INDIA: Bangladesh all set to easily surpass in garment exports
BharatTextile.com (subscription), India
MUMBAI: The Clothing Manufacturers Association of India (CMAI) feels that Bangladesh is all set to easily surpass India in garment exports by the end of 2014, Rahul Mehta, president said here on July 08.
In 2014, garment exports from Bangladesh was around $ 7.8 billion; whereas the local domestic export stood at $ 8 billion. With low manufacturing costs coupled with several incentives in the overseas market, Bangladesh apparel exports have continuously been rising at a rate of 20-25 percent
The president added that the garment exports will be pushed into negative, if the rupee continues to appreciate against dollar. Bangladesh exports almost 90 percent of apparel production, although they does not have its back up of raw material for garments on its own.
Premal Udani, former president, CMAI commented that Bangladesh is a strong competitor on pricing with India and moreover, the cost of production there is low, and its currency is static against dollar unlike ours.
The domestic exporters have to pay 11 percent in EU countries and 18 percent in Canada, while Bangladesh has been exempted from any import duty in European markets and Canada.
On the other hand, industry players feel that if rupee climbs up further, there will be negative growth in apparel exports and the country may lose its principal markets.
India’s apparel exports grew by 20 percent in 2005 after the quota regime was dismantled.
