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Time of India
19-05-2025
- Business
- Time of India
India's port restrictions on Bangladesh imports to help MSMEs: Experts
NEW DELHI: Restrictions imposed by India on certain Bangladeshi goods will help the domestic ready-made garment industry, particularly MSMEs, to enhance their competitiveness, according to experts. On May 17, India restricted imports worth $770 million from Bangladesh, covering nearly 42 per cent of bilateral imports. Key goods like garments, processed foods, and plastic items are now limited to select sea ports or barred from land routes entirely. Ready-made garments, valued at $618 million, now face strict routing through only two Indian seaports. This severely limits Bangladesh's most valuable export channel to India. "Indian textile firms have long protested the competitive edge enjoyed by Bangladeshi exporters, who benefit from duty-free Chinese fabric imports and export subsidies, giving them a 10-15 per cent price advantage in the Indian market," think tank Global Trade Research Initiative ( GTRI ) said. The port restrictions will help Indian MSMEs (micro, small, and medium enterprises) from the textiles sector, GTRI founder Ajay Srivastava said. Sharing similar views, Apparel Export Promotion Council ( AEPC ) Vice Chairman A Sakthivel said it was a demand of domestic exporters to impose these restrictions. Live Events "It is a good decision now taken by the Indian government. The domestic industry will benefit from this," Sakthivel said. The move comes in response to Bangladesh's recent restrictions on Indian yarn, rice, and other goods, as well as the imposition of a transit fee on Indian cargo's departure from past cooperation. Even as Dhaka moves closer to Beijing, India should not shut the door to dialogue, Srivastava said. "As the bigger neighbour and regional power, India has a greater responsibility to lead with patience, keep communication open, and avoid using trade as a weapon. Rebuilding trust through diplomacy and economic cooperation is still possible," he said.
Time of India
18-05-2025
- Business
- Time of India
Retaliatory curbs may hit Dhaka's export edge, hurt Indian buyers too
NEW DELHI: Indian govt's retaliatory move to restrict import of ready-made garments (RMG) from Bangladesh via the land route is expected to increase logistics costs and transit time for the products which account for around a third of shipments from India's neighbour in the east. Tired of too many ads? go ad free now While it takes only two-three days for apparel produced in Bangladesh to move through land borders, now the transit time is going to be longer, depending on how long it takes for ships to sail to Kolkata and Nhava Sheva (Mumbai),, and clear customs before taking the land route to reach Indian warehouses. 'The decision can hit Bangladesh apparel exports to India in multiple ways, particularly when a substantial proportion of apparel import into India is through land ports, 76% from Petrapole land port alone,' said Mithileshwar Thakur, secretary general of Apparel Export Promotion Council , whose members are rivals as well as exporters from Bangladesh. Several Indian companies had set up units across the border to take advantage of the lower cost of production, including lower wages and subsidised power, and tariff advantage that Bangladesh enjoys due to its status as a least developed country, something that will change as it has now graduated to middle-income bracket. 'Indian manufacturers pay a 5% GST on locally sourced fabric, while Bangladeshi firms import fabric duty-free from China and receive export incentives for sales to India, giving them an estimated 10%-15% price advantage,' said trade expert Ajay Srivastava. For Indian retailers , as well as global chains operating in the country, switching suppliers is not an easy decision given the massive cost advantage Bangladesh enjoys. Besides, it produces at a scale which few Indian manufacturers have and have refused to add capacity despite wide-spread assessment political uncertainty will hurt Dhaka's industrial mainstay, readymade garments. 'If I have a large order, I prefer Bangladesh because one producer can meet my requirement, and on time,' the CEO of an Indian retailer said. Tired of too many ads? go ad free now India's retaliation follows a series of restrictions imposed by Bangladesh, including a ban on Indian yarn imports, and import bans on dozens of Indian goods, including paper, tobacco, fish and powdered milk. 'Adding to the friction, Dhaka introduced a transit fee of Taka 1.8 (Rs 1.25) per tonne per km on Indian goods moving through its territory. ,' said Srivastava. Besides, Dhaka's growing proximity with China is a major worry.
Time of India
18-05-2025
- Business
- Time of India
Transit delays, higher costs: Bangladesh garment import curbs to hit buyers
IANS photo NEW DELHI: Indian govt's retaliatory move to restrict import of ready-made garments (RMG) from Bangladesh via the land route is expected to increase logistics costs and transit time for the products which account for around a third of shipments from India's neighbour in the east. While it takes only two-three days for apparel produced in Bangladesh to move through land borders, now the transit time is going to be longer, depending on how long it takes for ships to sail to Kolkata and Nhava Sheva (Mumbai), the two designated ports, and clear customs before taking the land route to reach Indian warehouses. Bangladesh enjoys massive cost advantage 'The decision can hit Bangladesh apparel exports to India in multiple ways, particularly when a substantial proportion of apparel import into India is through land ports, 76% from Petrapole land port alone,' said Mithileshwar Thakur, secretary general of Apparel Export Promotion Council . For Indian retailers, changing suppliers not an easy decision It can restrict their access to the Indian market, increase their delivery time and jack up logistics cost, thereby adversely impacting their cost and export competitiveness,' said Thakur. The council's members are rivals as well as exporters from Bangladesh. Several Indian companies had set up units across the border to take advantage of the lower cost of production, including lower wages and subsidised power, and the tariff advantage that Bangladesh enjoys due to its status as a least developed country (LDC), something that will change as it has now graduated to the middle-income bracket. India-Bangladesh trade 'Indian manufacturers pay a 5% GST on locally-sourced fabric, while Bangladeshi firms import fabric duty-free from China and receive export incentives for sales to India, giving them an estimated 10%-15% price advantage,' explained trade expert Ajay Srivastava. For Indian retailers, as well as global chains operating in the country, switching suppliers is not an easy decision, given the massive cost advantage that Bangladesh enjoys. Besides, it produces at a scale which few Indian manufacturers have and have refused to add capacity despite wide-spread assessment that the political uncertainty will hurt Bangladesh's industrial mainstay, readymade garments. 'If I have a large order, I prefer Bangladesh because one producer can meet my requirement, and on time,' the CEO of an Indian retailer said. India's retaliation follows a series of restrictions imposed by Bangladesh, including a ban on Indian yarn imports through five major land ports, tighter curbs on rice shipments, and import bans on dozens of Indian goods, including paper, tobacco, fish and powdered milk. 'Adding to the friction, Dhaka introduced a transit fee of Taka 1.8 (Rs 1.25) per tonne per km on Indian goods moving through its territory. These cumulative actions, along with operational delays and tightened port inspections, have hampered Indian exporters and triggered calls for a calibrated response,' said Srivastava. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
18-05-2025
- Business
- Business Standard
'India's port restrictions on Bangladesh imports to help domestic MSMEs'
Restrictions imposed by India on certain Bangladeshi goods will help the domestic ready-made garment industry, particularly MSMEs, to enhance their competitiveness, according to experts. On May 17, India restricted imports worth USD 770 million from Bangladesh, covering nearly 42 per cent of bilateral imports. Key goods like garments, processed foods, and plastic items are now limited to select sea ports or barred from land routes entirely. Ready-made garments, valued at USD 618 million, now face strict routing through only two Indian seaports. This severely limits Bangladesh's most valuable export channel to India. "Indian textile firms have long protested the competitive edge enjoyed by Bangladeshi exporters, who benefit from duty-free Chinese fabric imports and export subsidies, giving them a 10-15 per cent price advantage in the Indian market," think tank Global Trade Research Initiative (GTRI) said. The port restrictions will help Indian MSMEs (micro, small, and medium enterprises) from the textiles sector, GTRI founder Ajay Srivastava said. Sharing similar views, Apparel Export Promotion Council (AEPC) Vice Chairman A Sakthivel said it was a demand of domestic exporters to impose these restrictions. "It is a good decision now taken by the Indian government. The domestic industry will benefit from this," Sakthivel said. The move comes in response to Bangladesh's recent restrictions on Indian yarn, rice, and other goods, as well as the imposition of a transit fee on Indian cargo's departure from past cooperation. Even as Dhaka moves closer to Beijing, India should not shut the door to dialogue, Srivastava said. "As the bigger neighbour and regional power, India has a greater responsibility to lead with patience, keep communication open, and avoid using trade as a weapon. Rebuilding trust through diplomacy and economic cooperation is still possible," he said.
Yahoo
17-05-2025
- Business
- Yahoo
India-UK trade deal set to boost India's fashion export market
Chairman of the export promotion committee of India's Apparel Export Promotion Council (AEPC) and managing director of export company Kaytee Corporation Pvt Ltd Premal Udani is 'highly enthused' by the India/UK free trade agreement (FTA). He told Just Style: 'The FTA neutralises a 10% duty, thus giving India a level playing field with some of our neighbouring countries. We expect a minimum 30% increase in exports of apparel within the first year after the FTA is operationalised.' Chief mentor and past president of the Clothing Manufacturers Association of India (CMAI) Rahul Mehta, agrees adding: 'Considering that product categories such as t-shirts, trousers, dresses, shirts and blouses – all in which India has a significant strength in manufacturing - occupy a major share in the import basket of the UK, the FTA certainly provides us with an opportunity to increase our exports. It has also come at a right time, when our major competitor Bangladesh is going through political turmoil.' Branding the FTA "a game changer", N Thirukkumaran, general secretary of Tiruppur Exporters' Association told Just Style: 'India's textile exports to the UK, currently estimated at $1.3bn annually, is poised to increase very significantly (at least double in one to two years) once the FTA comes into effect.' This might take a year, as ratification and formalisation procedures are completed. The India-UK FTA also comes when international buyers are comparing potential so-called 'reciprocal' tariff rates (based on trade deficit data rather than actual protection) threatened by the US from 8 July. The Trump administration's proposed tariff (37%) on Bangladesh is substantially higher than what is proposed for India (26%). The US imported $79.3bn's worth of apparel in 2023, accounting for about one-fifth of global imports. Bangladesh was the largest US supplier by value, supplying 9% of US apparel imports ($7.1bn), followed by India ($4.6bn, or 5.8%), according to APEC. India wants to leverage this strength throughout the value chain, from fibre to fashion, in ongoing bilateral trade talks with the US: 'We expect that a India-US bilateral trade agreement should be in place by June end,' predicted Mr Udani. "We expect that the Indian apparel industry will be a major beneficiary of such an FTA.' One benefit from the Trump administration's perspective is that India's substantial appetite to buy US products, from cotton to agriculture to oil to defence equipment, and the fact that India's traditional exports such as clothing do not compete with many American manufacturers are facilitating factors, he said. India's domestic textile and fashion market is also substantial - growing at a compound annual growth rate (CAGR) of 14.59% from $172.3bn sales in 2022 and expected to reach $387.3bn by 2028, said the India Brand Equity Foundation. There are however challenges in India. 'Our capacities are not enough, our scale is inadequate, and our supply chain timelines are not geared. We also do not have the ease of access to appropriate raw materials, especially of MMF [man-made fibre] fabrics which Bangladesh enjoys,' said Mehta. To this end, the Indian government, the garment industry and the AEPC are working in tandem to expand production capacity, train additional personnel and diversify India's fabric base, said Udani. In the short run, large capacity exporters may gain from Bangladesh's losses because they can deliver the quantities needed by major buyers, but medium and small players will also benefit from the FTAs that India is pursuing, which also includes talks with the European Union (EU), said Thirukkumaran. Higher visibility of Indian exporters at major US trade shows, such as Apparel Sourcing New York, MAGIC Las Vegas, and Texworld USA, is also attracting buyers. With the anticipated increase in India's production of MMF fabrics, technical fabrics and performance fabric, Indian apparel manufacturers are likely to expand their production base from traditional cotton products, said Thirukkumaran. India's increasing emphasis on environment, social and governance (EGS) practices is a major attraction for the global brands catering to the increasingly conscious clientele, to look to India as a sourcing hub, said Thirukkumaran. Tiruppur, in Tamil Nadu, for instance, is rapidly emerging as a global leader in ESG practices. The textile and knitwear hub generates 1,950MW of renewal energy and treats 130m litres of wastewater per day through advanced zero liquid discharge systems achieving 90% water reuse, according to the Tiruppur Exporters' Association general secretary. Earlier this month (May), the UK fashion and textile sector welcomed the 'landmark trade agreement' with India but said caution must be exercised to maintain a level playing field. "India-UK trade deal set to boost India's fashion export market" was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
