Nepal faces tough competition from Bangladesh
Friday, 31 August 2007
FE Report
The Nepal garment industry, which enjoys duty-free-entry of its products into the Indian market, foresees tough competition from the industry in Bangladesh in the wake of similar facilities being made available to Dhaka by New Delhi, according to a report of Kantipuronline.
"Once the deal is sealed, Bangladesh will enjoy facilities almost similar to the one Nepalese products have been enjoying. This might put the Nepali manufacturers, who have a lower competitive edge over the Bangladeshis, in a difficult position in the fast growing Indian market," Kantipuronline quoted Garment Association of Nepal (GAN) President Kiran Saakha, as saying.
The proposed Indo-Bangladesh textile pact allows India an annual import of eight million pieces of readymade garments free of customs duty.
So far, Bangladesh exports to India have been subject to customs and other duties totalling about 24 per cent.
"The agreement will reduce the advantage that Nepali manufacturers are enjoying," said Saakha.
The Nepal garment industry, which enjoys duty-free-entry of its products into the Indian market, foresees tough competition from the industry in Bangladesh in the wake of similar facilities being made available to Dhaka by New Delhi, according to a report of Kantipuronline.
"Once the deal is sealed, Bangladesh will enjoy facilities almost similar to the one Nepalese products have been enjoying. This might put the Nepali manufacturers, who have a lower competitive edge over the Bangladeshis, in a difficult position in the fast growing Indian market," Kantipuronline quoted Garment Association of Nepal (GAN) President Kiran Saakha, as saying.
The proposed Indo-Bangladesh textile pact allows India an annual import of eight million pieces of readymade garments free of customs duty.
So far, Bangladesh exports to India have been subject to customs and other duties totalling about 24 per cent.
"The agreement will reduce the advantage that Nepali manufacturers are enjoying," said Saakha.