Latest news with #MithileshwarThakur
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
Time of India
18-05-2025
- Business
- Time of India
GBCI, apparel exporters' body sign pact for sustainable manufacturing
Apparel exporters body AEPC on Sunday said it has inked a pact with Green Business Certification Institute (GBCI) with an aim to promote sustainable manufacturing in the garment sector. It will help increase the number of LEED (Leadership in Energy and Environmental Design) certified garment factories in India. LEED certification is a globally-recognised rating system for evaluating a building's environment performance and sustainability and indicates building's adherence to green building principles promoting energy efficiency, resource conservation and healthier indoor environments. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like War Thunder - Register now for free and play against over 75 Million real Players War Thunder Play Now Undo This Memorandum of Understanding was signed by Apparel Export Promotion Council (AEPC) secretary general Mithileshwar Thakur and Gopalakrishnan P, managing director, GBCI Asia Pacific and Middle East. Sudhir Sekhri, chairman AEPC, said the Indian garment industry is committed to promote sustainable practices. "The LEED certification indicates reduced resource consumption, lower carbon footprint and improved air quality within the factory. Additionally, it lowers the operating cost, increases the property value, and improves investors' confidence. I am sure more and more factories will go for this certification in times to come," Sekhri said. Live Events Thakur said India has only 13 LEED certified garment factories as against around 250 in Bangladesh. "There is a greater emphasis from the reputed brands globally on sustainability and we need to quickly catch the boat for staying competitive in the international market," he said.
The Print
16-05-2025
- Business
- The Print
Exports up 9 pc to $38.49 bn in Apr; trade deficit widens to 5-month high of $26.42 bn
The spurt in imports widened the trade deficit – the difference between the value of imports and exports – to the highest since November 2024 when it was recorded at USD 31.77 billion. According to the commerce ministry data released on Thursday, imports increased by 19.12 per cent year-on-year to USD 64.91 billion in April due to a rise in shipments of crude oil and fertiliser. New Delhi, May 15 (PTI) India's exports rose by 9.03 per cent to USD 38.49 billion in April on healthy growth in sectors such as electronics and engineering goods, while the trade deficit widened to a five-month high of USD 26.42 billion. The sectors which recorded export growth during the month included tobacco, coffee, marine products, tea, ready-made garments of all textiles, rice, gems and jewellery, spices, petroleum products and pharmaceuticals. The outbound shipments of electronics and engineering goods rose by 39.51 per cent and 11.28 per cent to USD 3.69 billion and USD 9.51 billion, respectively. Crude oil imports in April rose by 25.6 per cent to USD 20.7 billion while gold imports were up by 4.86 per cent to USD 3.09 billion. Commenting on the data, Commerce Secretary Sunil Barthwal said, 'I hope India will maintain this export momentum and it should be a good year for us' despite global uncertainties. 'We have opened this year with a bang,' he told reporters here adding exporters have achieved resiliency in their businesses. The secretary also said that the strategy to focus on 20 countries and six commodities is yielding positive results and the commerce ministry will continue to focus on this. He added that many free trade agreements are going to be concluded soon. According to the data, the estimated value of services exports for April 2025 was USD 35.31 billion compared to USD 30.18 Billion in April 2024. The estimated value of services imports for April 2025 was USD 17.54 billion as compared to USD 16.76 billion in April 2024. Apparel Export Promotion Council (AEPC) Secretary General Mithileshwar Thakur said India's apparel exports grew by 14.43 per cent despite ongoing global economic challenges, currency fluctuations and the uncertainty surrounding US reciprocal tariff policy. PTI RR RR MR MR This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Time of India
22-04-2025
- Business
- Time of India
Govt defines 'proof of origin' for trade purposes to promote ease of doing business
NEW DELHI: The government on Monday defined the ' proof of origin ' for trade purposes to promote ease of doing business and prevent the possibility of misuse of trade pacts. To seek duty concessions, an importer has to furnish proof or a 'certificate of origin' of a product from the FTA (free trade agreement) partner. According to the circular of the Department of Revenue , proof of origin means a certificate or declaration issued in accordance with a trade agreement certifying that the goods fulfil the country of origin criteria. Certificate of origin is a key document required for exports to those countries with which India has trade agreements. An exporter has to submit the certificate at the landing port of the importing country. The document is important to claim duty concessions under free trade agreements. This certificate is essential to prove where the goods come from. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 10 Things Flight Attendants Rarely Talk About, Plus Tips to Make Your Flights More Comfortable Enhancing In-Flight Comfort Undo Commenting on the move, Apparel Export Promotion Council ( AEPC ) Secretary General Mithileshwar Thakur said the customs circular puts in place a well-defined mechanism and a Standard Operating Procedure for seamless verification of the authenticity of the certificate of origin. "This will lead to removal of the element of uncertainty and bring in simplification and transparency while simultaneously putting a robust mechanism in place to prevent the possibility of misuse of origin criterion," Thakur said.
