Breaking News

You are here » Indian-Commodity  :  Economy  :  Need to impose safeguard measures to prevent cheap fabric imports: CITI


Need to impose safeguard measures to prevent cheap fabric imports: CITI

Textile industry body the Confederation of Indian Textile Industry (CITI) has stressed that there is an urgent need to impose safeguard measures such as Rules of Origin, Yarn Forward and Fabric Forward Rules in order to prevent routing of cheaper fabrics produced in countries like China through Bangladesh and Sri Lanka, that have free trade pacts (FTAs) with India. It also observed that the country's garment industry will face stiff competition from imported garments, especially from Bangladesh where production cost is much lower.

CITI pointed out that according to the latest data released by Bangladesh Export Promotion Bureau, India's import of garments from Bangladesh has touched $87.4 million during July to November 2017, registering a sharp increase of 56 percent from $55.92 million during the same period last year. Besides, it indicated that during July to November 2017, India's imports of knitted apparel from Bangladesh grew by 69 percent, while the imports of woven apparel jumped by 51 percent in the corresponding period of the previous financial year.

The textile industry body further said that the basic custom duty on import of garments from Bangladesh is exempted. It also noted that garment manufacturers in India have to pay duty on imported fabrics, while Bangladesh can import fabric from China duty free and convert them into garments and sell to India duty free. It added that this is putting Indian garment industry at a major disadvantage and it is feared that this figure will go up further in the coming days as more Indian Brands shift sourcing from India to low cost duty free countries like Bangladesh and Sri Lanka.

Related News

View all news

RBI's board to set up expert committee to examine ECF

The Reserve Bank of India's (RBI) Board meeting concluded on a cordial note. In the high profile meeting, which came amid the differences between the government and the RBI, the board agreed to ease liquidity......

RBI to infuse liquidity worth Rs 8000 crore through purchase of G-secs under OMO

Amid recent liquidity concerns, the Reserve Bank of India (RBI) has decided to infuse Rs 8,000 crore through purchase of the government securities (G-secs) under Open Market Operations (OMO) on November......

Investments through P-notes hit over 9-year low of Rs 66,587 crore in October

The share of foreign portfolio investments (FPI) through participatory notes (P-notes) in domestic capital markets has declined to nine-and-a-half year low of Rs 66,587 crore at the end of October. According......

Top News

View all news

Megastar Foods planning to incorporate subsidiary

Megastar Foods is planning to incorporate a subsidiary Company. The meeting of the Board of Directors of the company is scheduled to be held on November 27, 2018, to consider the same. Megastar Foods is......

Lupin launches generic Tetrabenazine Tablets

Lupin has launched Tetrabenazine Tablets, 12.5 mg and 25 mg having received an approval from the United States Food and Drug Administration (USFDA) earlier. Lupin's Tetrabenazine Tablets, 12.5 mg and 25......

UPL's arm signs definitive agreement to acquire entire stake of IBC

UPL's wholly owned subsidiary-- UPL Corporation, Mauritius has signed a definitive agreement to acquire directly or through its subsidiaries 100% of the shares of INDUSTRIAS BIOQUIM CENTROAMERICANA, SOCIEDAD......