The Director of Foreign Affairs (DGFT) banned the import of clothing and several other products from Bangladesh in a notice on Saturday, but allowed them to be shipped through Kolkata and NHAVA SHEVA ports.
Local industries have been demanding restrictions on imports as double-digit growth in imports of textiles from Bangladesh due to zero import taxes.
The move also hopes to curb backdoor imports of China’s structure, otherwise it will attract a 20% import tax.
Trade and industry agree that Bangladesh will lose more than India due to changes in import policies.
Bimal Bengani, chairman of the Federation of Export Organizations of India (FIEO), said: “India will not lose much… It will be difficult for Bangladesh to import containers on land through sea routes, which took several days.”
Improve local manufacturing: Industry insiders say the ban on land routes imported from Bangladesh could boost local manufacturing.
Sanjay K Jain, Chairman of the National Textile Commission of the Indian Chamber of Commerce (ICC), said: “We import clothing worth Rs 60,000 crore from Bangladesh every year. Now we can expect imports of Rs 1,000-2,000 crore.”
Due to the advantages of the zero industry, Indian companies have been importing and knitted clothing from Bangladesh.
“With this move (prohibiting imports through land routes), the reduction in import volume will help strengthen domestic production and support local manufacturers,” said Prabhu Dhamodharan, convener of the Federation of Derivatives of India, representing the entire value chain of the textile industry.
According to industry estimates, India accounts for 1-2% of its clothing consumption through imports, while Bangladesh accounts for about 35% of the country’s total clothing imports.
“The move will also reduce backdoor entry of Chinese fabrics into India (no responsibility) which are changing in Bangladesh and being sent to India for taxes,” Jain said.
Supply interruption: According to industry estimates, all leading Indian brands, as well as the global brands in India, come from 20% to 60% of clothing in Bangladesh.
The supply chains of these brands and many MSME units are expected to be disrupted in the near term.
“Buyers will be affected because temporary supply chains will be disrupted and there will be higher costs and lead times,” Jain said.
