India slaps 16pc duty on RMG from Bangladesh

[Zabaniyah]

r u sayin that bangladeshis are not happy doing trade with india??because its expected to reach a $2 billion this year.and the totla trade is $4.5 billion. bangladesh is the largest trading partner of india in the sub continent
Bangladesh now India’s largest trading partner in subcontinent - Livemint
Business Line : Industry & Economy News : Bangladesh garment exports to India sees a big spurt

Er...ever bothered to check Bangladesh's trade deficit with India?

And besides, it is the EU which is Bangladesh's largest overall trading partner.

In the past, they did offer on granting duty-free access before:
http://www.defence.pk/forums/bangladesh-defence/140628-india-grants-duty-free-entry-all-bd-goods.html

 

[Mattrixx]

Our businessmen are talented they know how to cope with situation.
Real problem they are facing inside the country.
They know how to find new markets.

 

[neehar]

Ever bothered to see Bangladesh's trade deficit with India?

And besides, it is the EU which is Bangladesh's largest overall trading partner.

In the past, they did offer on granting duty-free access before:
http://www.defence.pk/forums/bangladesh-defence/140628-india-grants-duty-free-entry-all-bd-goods.html

but for that trade deficit we dont have any reason to do the trade with bangladesh. e.u need ur agricultural produce and garments.whats that can u offer to india which we dont have???answer is none.india always seeks to have a good relation with bangladesh which is the reason for those waviers .india gave duty free waviers for 61 items and they all enjoyed tax free trade for 2 years and now india imposed duty only on garments.we have local traders to take care more than bangladesh who were affected by ur waviers.and for how many years have u provided duty free trade with india??please do share

 

[Zabaniyah]

Our businessmen are talented they know how to cope with situation.
Real problem they are facing inside the country.
They know how to find new markets.

Any talented Bangladeshi businessman would be wise to avoid wasting time marketing effort in a country that can never make up its own mind.

but for that trade deficit we dont have any reason to do the trade with bangladesh. e.u need ur agricultural produce and garments.whats that can u offer to india which we dont have???answer is none.india always seeks to have a good relation with bangladesh which is the reason for those waviers .india gave duty free waviers for 61 items and they all enjoyed tax free trade for 2 years and now india imposed duty only on garments.we have local traders to take care more than bangladesh who were affected by ur waviers.and for how many years have u provided duty free trade with india??please do share

I already answered that question.

 

[neehar]

I already answered that question.

no u havnt. u gave the link where india provided duty free access.i asked abt the contribution of bangladesh.did u even provide duty free access to a single product??and u were accusing india

And besides, it is the EU which is Bangladesh's largest overall trading partner.

/QUOTE]

and i never said india is bangladesh's largest partner.i said bangladesh is the largest trade partner to india in the sub continent..

 

[fallstuff]

RMGs will go the same with the cows come in. I don't think anybody pay any duty for the cows.

 

[ares]

RMGs will go the same with the cows come in. I don't think anybody pay any duty for the cows.

And that is why smugglers are shot because their activities harm our industry.

 

[MandarK]

Stupid headline.

People who are writing such articles must be made aware of WTO trade laws.

No country can have different tax rate on the basis of a Country from where the product is originating.

So this all talk about BD is useless. The duty is on all the countries which are exporting RMG to India and I think China is much ahead than BD.


Secondly...The Counter Veiling Duty's (CVD) limit is prescribed by WTO and not by individual countries. The WTO usually prescribes the maximum duty which can be levied. If it is against WTO laws then file an appeal.

 

[MandarK]

Why not Hassina slap 20% on Indian imports?

As an elite member you should have known that no WTO member can have country specific Tax rate unless a waiver is granted by the Ministerial Body.

 

[Mian H Amin.]

same .. your country .. your rules

 

[fallstuff]

And that is why smugglers are shot because their activities harm our industry.

Stasi was Boyscout comparing to BSF. The poor receives the short and lethal end as always in India.

Anyway if there is a market for it, product will find its way.

 

[idune]

Expert from the op itself

Prime Minister Manmohan
Singh's visit to the neighbouring country in
September 2011. The decision
had allowed as many as 46
textile items (according to
BGMEA, it is 48) from
Bangladesh to hit the Indian market without any duty".


Now this 15.36% will be in effect since the new budget of 2013 .


Blind jamati haters.You guys enjoyed 2 years of duty free access to the market of 1.23 billion at a fraction of transportation cost,isn't that enough???

One has to wonder where does these indians come from, some sort of isolation or something. 1.23 billion people in india is not market size but burden for india. And good protion of that indian population fed by $10 billion + export money india makes from Bangladesh. Bangladesh garment export to india is less than $100 million which is miniscule for Bangladesh total garments export volume. When it comes to garments, indian market does not matter. What matter is indian deception of saying "duty free" access when imposing non tariff and local tariff barriers. Furthermore it put indian dalal class in Bangladesh on spot for making india submissive claims.

According to the BGMEA, Bangladesh apparel shipment to India stood at $35 million in FY 2010-11, out of the total overseas sale of $19 billion. The amount is 0.0013 per cent of India's $28 billion clothing market.

An Analysis on India's big heart offer to Bangladesh

Earning from knit products from the Indian market stood at $4.01 million during the July-September period of 2012-13 fiscal marking a negative growth by 21.26 per cent compared to the corresponding period of last fiscal.
But woven sector fetched $17.78 million during the July-September period of current fiscal, showing a 46.89 per cent growth.

Bangladesh Apparel Export To India Faces Setback

 

[eastwatch]

I may be wrong, but, I think that this imposition of 16% duty on BD garments is partially targetted at stopping the exodus of Indian textile makers to Bangladesh. These Indian factories get a two front advantage by moving out to BD. They enjoy entry both to international as well as Indian markets. It is their home market in India that they depend more for their initial export. Based upon this easy access to Indian market they can target the more lucrative EU and US markets.

But, once a heavy duty is imposed on made-in-Bangladesh RMG imports to India, it is obvious that the factories, eager to move out to BD, would reconsider that move. I assume, this is why the GoI has imposed this heavy duty on BD garments. Yes, this is how India will save thousands of cotton field and factory jobs that will stop cotton farmers from committing suicide.

 

[Contrarian]

I may be wrong, but, I think that this imposition of 16% duty on BD garments is partially targetted at stopping the exodus of Indian textile makers to Bangladesh. These Indian factories get a two front advantage by moving out to BD. They enjoy entry both to international as well as Indian markets. It is their home market in India that they depend more for their initial export. Based upon this easy access to Indian market they can target the more lucrative EU and US markets.

But, once a heavy duty is imposed on made-in-Bangladesh RMG imports to India, it is obvious that the factories, eager to move out to BD, would reconsider that move. I assume, this is why the GoI has imposed this heavy duty on BD garments. Yes, this is how India will save thousands of cotton field and factory jobs that will stop cotton farmers from committing suicide.

I think you are right.
The textile sector in India has been in shambles with no government support and GoI offering duty free access to BD was almost like the death bell for them.
Some Indian manufacturer's had already started a factory in BD while many more were considering. This should put a stop to that.

 

[TopCat]

I dont think India can afford to import clothes for its citizenry.