The Indian government’s recent decision to allow duty-free access to 46 textile items from Bangladesh has earned the ire of Ludhiana’s SME-dominated textile industry and textile exporters in Tirupur. The signed treaty declares that 46 textile products from Bangladesh can be imported into India by paying zero percent duty. Local entrepreneurs exclaim that though this decision would enhance bilateral interests between the two neighbours, it is likely to adversely affect the domestic SME textile players.
Expressing concern the Tirupur Exporters Association (TEA) in a representation to the Prime Minister, expressed fears that domestic retail players would prefer Bangladeshi garment manufacturers over the Indian ones for placing orders. Domestic textile players cannot compete with the prices offered by their Bangladeshi counterparts. Cheaper wages of labourers there will benefit textile units in Bangladesh wherein they can offer products at much low prices. On the other hand, Indian products would be 30 per cent costlier than the products imported from Bangaldesh. Ludhiana Knitwear Club and MSME Garment Manufacturers Association of Ludhiana are other textile-based associations that have voiced against the duty-free imports from Bangladesh.
Over the last 2 years, Bangladesh had been pressurising India to give duty waiver on 61 products, of which 46 are textile items including shirts, skirts, kids wear, jeans and cotton nightwear, amongst others. The duty-free access will increase Bangladeshi apparel exports to India considerably, said Shafiul Islam Mohiuddin, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
