Textile fraternity welcomes India's move to simplify imports duty

16 Aug '05

2 min read

In a move to remove some specific duties imposed on Bangladeshi textiles imports, Indian Prime Minister Manmohan Singh is likely dicuss on the issue with the Trade and Economic Relations Committee (TERC) in New Delhi, said sources.

The removal of specific duties will permit textile, jute, fruits and dry fruit imports from Bangladesh as well as from Pakistan at cheaper cost to the Indian market, as they will be replaced with simple duties, sources added.

Currently, local producers are paying minimum 32 percent duties for exporting textiles to Indian market. Specific duty is assessed on the basis of units of quantity (per piece) or weight, which usually make the products costly.

If the decision is taken to ease entry of Bangladeshi products to India, a flat rate of up to 15 percent might be mooted under simple duty structure.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) sources informed that the Indian move is certainly very optimistic, as India is a huge market for Bangladeshi exporters.

It is a welcome news as it's an opportunity for the knitwear exporters to enter the potential Indian market. Local textile millers also commend the Indian move, praising their neighbour for changing its mindset, said sources from Bangladesh Knitwear Exporters Association (BKMEA).

Bangladesh Textile Mills Association (BTMA) sources stated that it is considerable and positive move, that India hasshown. However, the scenario will be clear after the official announcement.

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