Now small industries in India will benefit; Indian garment business with Britain will increase
Limit On Bangladeshi Import: Small industries in India are expected to benefit from the ban on import of Bangladeshi goods. Indian companies have often opposed the advantage being gained by Bangladeshi exporters. India has banned imports worth $ 770 million. This decision will help the domestic textile industry to increase its competitiveness.
India's ban on importing certain products from Bangladesh will be advantageous for Bangladesh's small and medium-sized enterprises (MSMEs). According to the Global Trade Research Initiative (GTRI), it will increase the competitiveness of the local readymade garment industry. India banned imports valued at $ 770 million from Bangladesh on May 17. These comprise 42 percent of bilateral imports. Readymade apparel valued at $ 618 million is now being allowed through just two ports in India. This puts a serious constraint on Bangladesh's most valuable export outlet.
According to the report, Indian textile companies have long been protesting the competitive edge enjoyed by Bangladeshi exporters, who benefit from duty-free Chinese textile imports and export subsidies. This gives them a 10-15 per cent price advantage in the Indian market. A Sakthivel, vice-chairman of the Apparel Export Promotion Council (AEPC), said, "This ban is a good decision by the Indian government. This will benefit the domestic industry."
According to credit rating agency ICRA, India's apparel and home textile trade with the UK is expected to grow. India's apparel and home textile trade with the UK is expected to double from its current level in the next 5-6 years due to the recently concluded FTA between India and the UK. Under the agreement, India will reduce tariffs on 90 per cent of British goods, while 85 per cent will become completely duty-free over a period of ten years. In return, the UK has agreed to reduce its tariffs on some products, resulting in 99 per cent of exports from India to the UK being duty-free.
The report said that even though Bangladesh is getting closer to China, India should not close the door to dialogue. As a big neighbour and regional power, India has a big responsibility to lead with patience, keep the dialogue open and avoid using trade as a weapon.
India is currently the 12th largest trading partner of the UK. It ranks fifth in imports of apparel and home textiles. The value of apparel and home textiles imported by the UK from India in 2024 was $1.4 billion. The US and the EU will remain the major export markets for Indian apparel and home textile exporters, accounting for 61 per cent of the total in 2024.
