With GST, Bangladesh enters Indian garments market

Industry sources say many RMG retailers in the organised sector have started procuring from Bangladesh in a big way

Bangladesh has started making inroads in India's readymade garments (RMG) market, due to manufacturing cost advantages there after implementation here of the Goods and Services Tax (GST).

The over-arching tax was implemented in India from July 1. And, import of RMG from Bangladesh jumped 56 per cent to $87.4 million from then to November over the corresponding period last year. Of this, import of knitted apparel surged 69 per cent to $30.1 mn. Import of woven apparel contributed the rest, $57.3 mn, from $38.1 mn in the same period last year.

In terms of volume and market size, overall import from Bangladesh