What Factors Led To The Decline In India's Textile Imports From Bangladesh?

The rupee's depreciation is not only an order textile Exporters cheered and the domestic garment industry was delighted. In the past year, the direct import of garments from Bangladesh increased in India, because the India government allowed 48 categories of textile products to be duty-free from Bangladesh.

Since last September, the rupee of India has depreciated by about 2%, when India allowed duty-free imports from Bangladesh. In the 9-3 months of last year, India's textile imports from Bangladesh amounted to US $1 billion 800 million, and the annual import volume before the duty-free implementation was US $587 million.

The abolition of low labour costs and import taxes has made consumers buy imported goods more than domestic ones. Clothing production The business department's purchase is about 20-15% cheaper. With the depreciation of the rupee, this interest is ignored.

In the past two months, India's clothing imports from Bangladesh have fallen by about 60-70%.

Rahul, President of India Garment Manufacturers Association. Mehta said: "retailers are now preparing to buy from domestic manufacturers instead of Bangladesh, because imports are expensive because of the depreciation of rupees".

At present, with the depreciation of the rupee, the prices of garments made in India and Bangladesh are almost the same. With the depreciation of the rupee, many big retailers also cut their purchases from Bangladesh. When tax-free starts, many retailers consider setting up a quarter in Bangladesh, where production costs are cheaper than India, but their plans remain in the hands until the rupees are stable.

Since 2009, Bangladesh has eroded India's market share in the export of finished textile products. Bangladesh Clothing export It has increased by 16%, while India's clothing export in fiscal year 2010-11 has increased by only 4%.