Govt to formalise unconditional duty free access of garments from Sri Lanka & Bangladesh
\nEconomic Times,\u00c2\u00a0India<\/p>\n
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NEW DELHI: For the domestic textile sector, already bleeding due to the rupee appreciation, this may add insult to injury. The government is all set to formalise unconditional duty free access of garments from Sri Lanka and Bangladesh up to specified limits. The move is guided by the South Asian Free Trade Area Agreement (SAFTA)<\/p>\n
The decision to allow duty-free imports of eight million garment pieces per calendar year from Bangladesh with the condition that some raw materials have to be imported from India was taken last year. However, under the new dispensation, exporters from Bangladesh will be allowed to export without restrictions on raw material sourcing.<\/p>\n
Similarly, Sri Lanka may also be allowed duty free access to the Indian market up to six million pieces. For an additional two million pieces, exporters will have to pay concessional duties. \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cThe Cabinet is expected to clear the proposal on Thursday,\u00c3\u00a2\u00e2\u201a\u00ac\u00ef\u00bf\u00bd an official said.<\/p>\n
Industry experts say that the move would hurt the domestic textile industry. \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cThe domestic textile industry is greatly disadvantaged compared to those of Bangladesh, Sri Lanka and China and giving trade benefits to these countries at a time when your industry is in great distress would have an adverse impact,\u00c3\u00a2\u00e2\u201a\u00ac\u00ef\u00bf\u00bd Vardhman group chairman S P Oswal said.<\/p>\n
\u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cIt is also unfair because these countries have not extended similar benefits to India,\u00c3\u00a2\u00e2\u201a\u00ac\u00ef\u00bf\u00bd he added. Commenting on the trade agreement, Confederation of Indian Textile Industry (CITI) secretary general D K Nair said, \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cGetting into free trade agreements (FTA) with all Asian countries is against the interest of the domestic textile sector. FTAs with the US or European Union would, however, be beneficial for the Indian textile industry.\u00c3\u00a2\u00e2\u201a\u00ac\u00ef\u00bf\u00bd<\/p>\n
According to experts, domestic companies will have to either bring down the prices or scale down production to make way for cheaper imports. \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cTo slash prices is not possible under current market situation as profit margins are very thin,\u00c3\u00a2\u00e2\u201a\u00ac\u00ef\u00bf\u00bd Mr Oswal said.<\/p>\n
Garment exporters, however, say that their main worry is rupee appreciation vis-\u00c3\u0192\u00c2\u00a0-vis dollar. \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cThe move would affect mostly the garment companies catering to domestic needs,\u00c3\u00a2\u00e2\u201a\u00ac\u00ef\u00bf\u00bd Orient craft chairman Sudhir Dhingra said.<\/p>\n","protected":false},"excerpt":{"rendered":"
Govt to formalise unconditional duty free access of garments from Sri Lanka & Bangladesh Economic Times,\u00c2\u00a0India NEW DELHI: For the domestic textile sector, already bleeding due to the rupee appreciation, this may add insult to injury. The government is all set to formalise unconditional duty free access of garments from Sri Lanka and Bangladesh up […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"yoast_head":"\n