China Chow Izabella Miko Tara Reid -

Is the Indian Government generous to a fault with its neighbors?
Indian Government has recently affirmed two major declarations. One was to acknowledge EUs proposal to grant duty free access to textile exports from Pakistan. The other one is giving zero duty access to 45 textile imports from Bangladesh into India. Critics feel that these generous policy declarations of the Government would jeopardize the Indian textile sector sooner or later. Is the generosity of Indian Government to its neighboring countries posing a threat to the nation's textile sector?

India and Bangladesh will face tough competition due to the duty free access granted to Pakistan on 75 items. Bangladesh will mainly face competition for 8 apparel items if Pakistan gets duty free exports to EU, which is a main importer of Bangladeshi apparels. Earlier India has raised its objections stating that the proposal would affect the exports of its counterparts, but withdrew the protest later stating this would only improve the bilateral relations between the two countries. 45 textile products covering up to 90% of Bangladesh's exports are granted duty free access. This liberalization does not consider the Rules of Origin. This indicates that Bangladesh need not use the yarn or textile material for making apparels that are being exported into India.

Is the Indian textile industry in the altar? Time is yet to reveal the answer.