Tamil Nadu has experienced a significant impact due to the progress made by Bangladesh, its neighbouring country, resulting in a decline in its status as India’s prominent textile hub and knitwear capital. The signing of the Free Trade Agreement (FTA) between India and Bangladesh is adversely impacting India’s textile exports and its market share within the domestic industry. The exemption of customs duty on fabrics imported from Bangladesh has resulted in a monthly increase in imports from this country, causing concern among producers in Tirupur.
The imports of Knitted Fabric from Bangladesh witnessed a rise to Rs 264 crore in the fiscal year 2022-2023, compared to the previous year’s recorded value of Rs 212 crore in 2021-2022. According to KM Subramanian, president of the Tirupur Exporters Association, the recent increase of 24.3 percent has posed significant challenges for the home industry. This concern was expressed in a memorandum submitted to Piyush Goyal, the Union Minister responsible for textiles.
In the fiscal year 2022-2023, the value of Knitwear Garments imported from Bangladesh into India exceeded Rs 2489 crore, compared to Rs 1576 crore in the preceding fiscal year of 2021-2022. According to Subramanian, a significant increase of 57.9 percent has resulted in a disadvantage for the local manufacturers. Bangladesh imports cost-effective raw materials from China, exporting the finalized products to the European and United States markets. According to S Sakthivel, the executive secretary of TEA, products originating from Bangladesh are exempt from taxation in Europe and the USA because of its status as a least-developed country.
According to his statement, the value of Indian exports is approximately $16.5 billion, whereas Bangladesh has already surpassed this figure with exports over $44 billion. According to Sakthivel, a fair and equitable environment is absent.
According to the president of the Textile Exporters Association (TEA), the resolution of the current issue faced by the knitwear industry is contingent upon the intervention of the Narendra Modi Government.
