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    India Garment Manufacturers Plan To Set Up Production Bases In Bangladesh

    2011/9/28 10:15:00 46

    India'S Clothing Manufacturing ProgramBangladesh Set Up Production Base

    Unable to persuade the government to cancel the ban on Bangladesh.

    tariff

    India textile manufacturers are now looking for the possibility of setting up production bases in Bangladesh.

    The India government recently allowed 48 Bangladesh textile products to enter the India market without tariffs.


    Rahul Mehta, President of the India Garment Manufacturers Association, said that many manufacturers and retailers are exploring such opportunities, and now they are studying the market in Bangladesh. Rahul Mehta,

    Compared with India, Bangladesh labor is also cheaper, which will help manufacturers reduce their production costs.


    According to people familiar with the situation,

    Originality

    Creative Group and other retailers are setting up production bases in Bangladesh.

    Globus, Reliance, Arvind textile mills and Madura Fashions & Lifestyles are doing the same thing.


    Textile manufacturers initially appealed to the government not to allow the duty-free import of Bangladesh products, which would result in an import of US $2 billion 500 million a year, and in addition to 1 million 250 thousand jobs.


    The clothing industry is the most employed sector, with more than 6 million people employed.

    about

    Manufacture

    Bangladesh is a cheaper destination for clothing and other textile products, because production costs are about 20% lower than that of India.


    Bangladesh exports more than India.

    India has been exporting less than Bangladesh since 2009.

    In 2010-11, Bangladesh's exports grew by 16%, while India's exports increased by 4%.


    Manufacturers will not reduce production in India, but they will set up a basic textile production base in Bangladesh.

    The chairman of the garment export promotion committee said that India is good at producing value-added textile products.


     
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