The devaluation of the rupee not only cheered textile exporters but also the domestic garment industry. In the past year, India’s clothing imports from Bangladesh increased directly because the Indian government allowed duty-free imports of 48 textile items from Bangladesh.
Since last September, the Indian rupee has devalued by about 2%. At that time, India allowed duty-free importation of clothing from Bangladesh. In September-March last year, India’s imports of textile items from Bangladesh reached 1.8 billion U.S. dollars, and the amount of imports before tax exemption was 587 million U.S. dollars.
The elimination of low labor costs and import taxes has caused consumers to purchase imported goods to be about 20-15% cheaper than buying from domestic clothing manufacturers. With the devaluation of the rupee, this interest was ignored.
In the past two months, India’s clothing imports from Bangladesh have been estimated to have dropped by about 60-70%.
Rahul, president of the Indian Apparel Manufacturers Association. Mehta said: "The retailer is currently preparing to purchase from domestic manufacturers, instead of importing from Bangladesh, because imports have become expensive due to the devaluation of the rupee."
At present, with the devaluation of the rupee, there is almost no difference in the prices of garments made in India and garments made in Bangladesh. With the devaluation of the rupee, many large retailers also cut their purchases from Bangladesh. At the beginning of the tax exemption, many retailers are considering setting up a quarter in Bangladesh, where the production costs are cheaper than India, but their plans have been in the hands until the rupee is stable.
Since 2009, Bangladesh has eroded India’s market share in the export of finished textile products. Bangladesh’s clothing exports increased by 16%, while India’s clothing exports in the 2010-11 fiscal year only increased by 4%.
Since last September, the Indian rupee has devalued by about 2%. At that time, India allowed duty-free importation of clothing from Bangladesh. In September-March last year, India’s imports of textile items from Bangladesh reached 1.8 billion U.S. dollars, and the amount of imports before tax exemption was 587 million U.S. dollars.
The elimination of low labor costs and import taxes has caused consumers to purchase imported goods to be about 20-15% cheaper than buying from domestic clothing manufacturers. With the devaluation of the rupee, this interest was ignored.
In the past two months, India’s clothing imports from Bangladesh have been estimated to have dropped by about 60-70%.
Rahul, president of the Indian Apparel Manufacturers Association. Mehta said: "The retailer is currently preparing to purchase from domestic manufacturers, instead of importing from Bangladesh, because imports have become expensive due to the devaluation of the rupee."
At present, with the devaluation of the rupee, there is almost no difference in the prices of garments made in India and garments made in Bangladesh. With the devaluation of the rupee, many large retailers also cut their purchases from Bangladesh. At the beginning of the tax exemption, many retailers are considering setting up a quarter in Bangladesh, where the production costs are cheaper than India, but their plans have been in the hands until the rupee is stable.
Since 2009, Bangladesh has eroded India’s market share in the export of finished textile products. Bangladesh’s clothing exports increased by 16%, while India’s clothing exports in the 2010-11 fiscal year only increased by 4%.
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