India Anti-Subsidy Duty 16% on Bengali Ready Garments

Bangladesh insiders from the garment sector say that India's parliament has agreed to levy anti-subsidy duty of 16% on ready-made garment from Bangladesh, which would frustrate the import from Bangladesh to India.

During the federal budget of 2013-14 fiscal year, India took anti-subsidy tariff of 12.36% and additional tax of 3% on garment imports from Bangladesh.

The Indian measure meets the Bengali garment exporters taking India as the largest export destination after the United States and EU, as New Delhi canceled import duties on 48 types of garments.

According to the statistics by BGMEA, garment exports from Bangladesh to India rose by nearly 35% in first 7 months of this fiscal year, in spite of many barriers, for instance, the devaluation of INR against USD, and debt crisis of Indian Lilliput.