India’s decision to double tax on textile imports from China will benefit the Bangladesh apparel industry as it will enable the country to export more products to India. Bangladesh’s RMG exports rose 10 per cent year-on-year in 2017-18 fiscal year. India’s decision will help Bangladesh further augment its growth in apparel exports this fiscal.
India's imports of textile products from Bangladesh, Vietnam and Cambodia also jumped in the last few years as they are not subject to any duty under free trade agreements (FTA) signed by India with these countries. The 20 per cent duty India imposed on textile products will not be applicable to products sourced from those countries due to the FTA.