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Tuesday, 19 February 2019 12:28

Bangladesh exports to India increases despite duty hike, labour unrest

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After the Indian government increased duties on textile products to check cheap imports from China, apparel imports from Bangladesh has more than doubled. Despite a spate of labor unrest in Bangladesh, apparel exports from that country to India grew 143 per cent between July and December to $270 million from $166 million in the same month last year, as per the data from Bangladesh Export Promotion Bureau. Value of knitwear exports rose 107 per cent and woven garment exports by 161 per cent.

The government had doubled the duties to 20 per cent for over 300 textile products, ranging from fibre to apparels, in August, mainly to check rising imports of cheaper products from China. Imports started increasing after the implementation of GST. The effective duty rates came down as the countervailing duty of 12 per cent was done away with post-GST. In FY18, India’s textile imports jumped 16 per cent to a record $7 billion and of this around $3 billion came from China.