Local textile industry at risk due to India-Bangladesh FTA

The increase in imports from Bangladesh has resulted in a gradual decline in domestic production over the years.

The textile industry, which has been adversely impacted by the free trade agreement between India and Bangladesh, has appealed to the government for assistance in limiting the import of garment and knitwear fabric from Bangladesh. They have also requested an opportunity to export goods to European countries without incurring any custom duty.

The industry has expressed its concern, labelling the upsurge in imports as a “serious threat” to the survival of both the local and domestic industry. According to a representative of the industry, the affordable and high-quality clothing from Bangladesh has dominated the domestic market for over a decade, being imported without any custom duty.

As per the textile industry association, the increase in imports from Bangladesh has resulted in a gradual decline in domestic production over the years, leading to a loss in revenue for the industry. The situation is said to be worsening over time.