Duty free access for textile products from Bangladesh will adversely hit the domestic industry, according to sources here.
Tirupur Exporters' Association President A. Sakthivel said garments from Bangladesh were likely to flood the domestic market, thereby causing undue hardship to garment makers. When there was a demand compression in the U.S. and the European Union, Bangladesh garment exporters would supply more to the Indian market. Bangladesh had inherent advantages in the cost of manufacturing. It also had an additional advantage in the cost of manufacturing when it permits duty free import of cotton and yarn on a reciprocal basis. To be competitive, the Indian garment industry needed a level-playing field, he said.
D. K. Nair, Secretary General of the Confederation of Indian Textile Industry, said duty free import of 46 textile items (mainly garments) from Bangladesh would affect the garment hubs in the country. So far, garment imports from Bangladesh attracted 10 per cent ad valorem or specific duty, whichever is higher. About 10 million pieces of garments were allowed under zero duty import.
In a recent memorandum to the Prime Minister, Confederation Chairman Shishir Jaipuria said the Bangladesh apparel manufacturing industry was far more competitive than the Indian units.
The domestic garment industry was mostly in the small-scale sector and the operational costs were high here. The labour cost in Bangladesh was one-third of the wages paid to a garment worker in India.
The government should have a pre-condition for the duty-free import that the origin of fabric for these textile products should be India alone.
Buyers should boycott made in Bangladesh garments & govt should insist on "Made in Bangladesh" tag. The manufacturers should diversify. I dont think labour is expensive outside metro's like Tirupur, Gurgaon etc. Why dont manufacturers shift to interior areas like Naxal belt, Bihar etc where labour is very cheap. This will bring employment to poor & weaken Naxal cause.
India has its own cotton, Dyes and Chemicals,and machinery,running industries sine many years. Labor cost difference per garment is not much. We must think how much water we are wasting? How much pollution we are making? We are drinking 10 or 15 Rs/liter water, because we spoiled our water and environment. Calculate water consumption per T shirt* 10 Rs= How much rupees? Are we earning? or loosing.Some businessman are earning but normal public loosing environment & drinking 10-15 Rs/liter water.Besides quality wise, We must inquire how much pollution control board staff and middleman earned?Instead of establishing business one big Industrial area,we spread all over.How much time and money wasted for transportation? We have two standard for local and export. Consumers are our India brothers or sister, what problem if they get good and cheap garments?which we never gave If i have to import T shirt,i will prefer Bangladesh instead of India, Even though i am Indian. Article need but no more space.
We are already loosing our EU,& USA export market due to stiff competition from Bangladesh and other countries. Now this duty free import will worsen already deteriorated situation. Soon Cheap garments from Bangladesh will flooded the indian market. We cannot reduce the wages for Indian garment industry workers because of growing inflation the life of common man is already in doldrums.The best thing which we can do to make indian garment industry competitive in international market is reducing duties at all level beginning from raw material. I know government will loose revenue in the from of excise duty but main aim of government is to make industry competitive not earning revenue. Garment industry provide jobs to millions of people directly and indirectly. A task force of experts should be appointed to look after problems faced buy Indian garment industry.
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