Bangladesh set to overtake India in garment exports
\nBS Reporter \/ Mumbai July 05, 2014
\nBusiness Standard, India<\/p>\n
<\/p>\n
Bangladesh is set to beat India\u00e2\u20ac\u2122s garment exports in the wake of an appreciating rupee.<\/p>\n
Last year, the country exported garments worth $ 8 billion, whereas Bangladesh notched up around $ 7.8 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 per cent.<\/p>\n
Industry experts believe if the rupee continues to appreciate against dollar, the country\u00e2\u20ac\u2122s garments exports will be pushed into negative territory. Rahul Mehta, president, Clothing Manufacturers Association of India (CMAI), said, \u00e2\u20ac\u0153Bangladesh will easily surpass India in garment exports by the end of this year.\u00e2\u20ac\u009d<\/p>\n
Bangladesh exports almost 90 per cent of apparel production. The country does not have its back up of raw material for garments on its own. Instead, it is dependent on imports mainly from China. On the other hand, India does not depend on imports for raw material owing to its sufficient back up.<\/p>\n
\u00e2\u20ac\u0153Bangladesh is strong competitor on pricing with India. Moreover, the cost of production there is low, and its currency is static against dollar unlike ours,\u00e2\u20ac\u009d said Premal Udani, former president, CMAI.<\/p>\n
He added that in European markets and in Canada, Bangladesh was exempted from any import duty. However, Indian exporters have to pay 11 per cent in EU countries and 18 per cent in Canada.<\/p>\n
As far as exports to India is concerned, there is a concession of 50 per cent in the import duty to Bangladesh, said Udani. 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.<\/p>\n
After the quota regime was uplifted in 2005, India\u00e2\u20ac\u2122s apparel exports grew by 20 per cent that year. However, the next year, the growth was down to 8 per cent.<\/p>\n","protected":false},"excerpt":{"rendered":"
Bangladesh set to overtake India in garment exports BS Reporter \/ Mumbai July 05, 2014 Business Standard, India Bangladesh is set to beat India\u00e2\u20ac\u2122s garment exports in the wake of an appreciating rupee. Last year, the country exported garments worth $ 8 billion, whereas Bangladesh notched up around $ 7.8 billion. With low manufacturing costs […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"yoast_head":"\n