The government’s recent move to grant duty-free access of 46 garment products from Bangladesh will not impact large textile companies which are into retailing. Rather, it will hurt small retailers who do not have the wherewithal to set up shop in Bangladesh.
Large textile firms, which have significant exposure to retailing big brands, have already set up units in Bangladesh. This grant from the government would result in joint collaborations of Indian textile and retailers with Bangladeshi manufacturers. In recent years, Bangladesh has emerged as an economical and lucrative garment-manufacturing hub for many European countries and also China.