Low Cost To Attract India Textile Manufacturers To Turn To Bangladesh

Many garment manufacturers in India have shifted their production bases or set up new factories in neighboring Bangladesh, aiming at low labour costs and access to the US and European markets. tariff Concessions policy.

Nair, Secretary General of India Textile Industry Federation, said: "Bangladesh's labor cost is almost 1/3 of India's DK. The average monthly labor cost of Indians is more than 7000 rupees, but only about 2500 rupees in Bangladesh.

Nair said that so far, 35 India textile companies have opened factories in Bangladesh, mostly recently opened factories.

According to the Bangladesh investment board, India Spin The company has opened 35 factories in Bangladesh and invested nearly US $80 million.

Bangladesh is listed in the least developed countries, enjoying tariff free exports to European markets, while India companies need to pay 9.6% of the tariff.

Textile enterprises are facing cut throat competition, the profit margin is very low, and the cost difference between 15-20% is a big thing. Therefore, Bangladesh attracts more and more people.

Even though China can not compete with Bangladesh, so U.S.A China's market share is being robbed by Bangladesh in the European market.

The textile industry is probably the most labour intensive industry. Bangladesh is not only cheap labor, but also easy to obtain labor compared with India and China.

In addition to labor costs and tariff preferences, Bangladesh's raw material and real estate costs are no less expensive.