Coimbatore: Even as textile exports continue to advance at a slow tempo, imports have larger at the again of a pointy surge in shipments from Bangladesh. Textile imports grew 19.7% year-on-year to round $1.four billion between April and December 2017 while exports went up by a measly 2% y-o-y to $26.1 billion for the time frame.
India's imports of garments from Bangladesh larger 66% y-o-y to $111.three million right through July-December 2017, in keeping with the latest statistics released by Export Promotion Bureau of Bangladesh. While knitted attire imports from Bangladesh soared 77% y-o-y to $36.5 million between July and December 2017, woven attire imports grew 62% y-o-y to $74.eight million.
"It (imports) is negatively affecting the domestic yarn, fabric and garment manufacturers," mentioned Sanjay Okay Jain, chairman, Confederation of Indian Textile Industry (CITI). "There is a greater need to impose safeguard measures such as rules of origin, yarn forward and fabric forward rules on countries like Bangladesh and Sri Lanka that have FTAs (free trade agreements) with India to prevent cheaper fabrics produced from countries like China routed through these countries," he mentioned.
Garment manufacturers in India must pay accountability on imported fabrics, while Bangladesh can import cloth from China accountability loose and convert them into clothes and sell to India accountability loose. This has put the garment industry in a spot.
"India can increase its exports of cotton yarn and fabrics provided the sector is restored with export incentives," the CITI chairman said. "India's share of cotton yarn in world trade is 26% and it is declining steeply as the incentives given to the cotton yarn sector were withdrawn in 2014 and MEIS (Merchandise Exports from India Scheme) which was extended to the entire value chain was not extended to cotton yarn," he mentioned.
"Moreover, there are various state levies up to the tune of 8% on cotton yarn which are not refunded at any stage," Jain identified. "Similarly, fabric sector is not getting refund of state levies of around 6%. By including cotton yarn under MEIS and providing ROSL (refund of state levies) for fabrics, Indian can retain its competitiveness in the global market," he mentioned.
India's imports of garments from Bangladesh larger 66% y-o-y to $111.three million right through July-December 2017, in keeping with the latest statistics released by Export Promotion Bureau of Bangladesh. While knitted attire imports from Bangladesh soared 77% y-o-y to $36.5 million between July and December 2017, woven attire imports grew 62% y-o-y to $74.eight million.
"It (imports) is negatively affecting the domestic yarn, fabric and garment manufacturers," mentioned Sanjay Okay Jain, chairman, Confederation of Indian Textile Industry (CITI). "There is a greater need to impose safeguard measures such as rules of origin, yarn forward and fabric forward rules on countries like Bangladesh and Sri Lanka that have FTAs (free trade agreements) with India to prevent cheaper fabrics produced from countries like China routed through these countries," he mentioned.
Garment manufacturers in India must pay accountability on imported fabrics, while Bangladesh can import cloth from China accountability loose and convert them into clothes and sell to India accountability loose. This has put the garment industry in a spot.
"India can increase its exports of cotton yarn and fabrics provided the sector is restored with export incentives," the CITI chairman said. "India's share of cotton yarn in world trade is 26% and it is declining steeply as the incentives given to the cotton yarn sector were withdrawn in 2014 and MEIS (Merchandise Exports from India Scheme) which was extended to the entire value chain was not extended to cotton yarn," he mentioned.
"Moreover, there are various state levies up to the tune of 8% on cotton yarn which are not refunded at any stage," Jain identified. "Similarly, fabric sector is not getting refund of state levies of around 6%. By including cotton yarn under MEIS and providing ROSL (refund of state levies) for fabrics, Indian can retain its competitiveness in the global market," he mentioned.
Textile imports increase 19.7% on surge in Bangladesh shipments
![Textile imports increase 19.7% on surge in Bangladesh shipments]()
Reviewed by Kailash
on
January 18, 2018
Rating:
