Bangladesh’s garment exporters are going to visit Gujarat in India at the invitation of Indian Government for a feasibility study on establishing proposed garment warehouse and distribution centre along with retail shops across the country.A five-member delegation comprising leaders of the garments and textiles sector, led by the Federation of Bangladesh Chambers of Commerce and Industry president Matlub Ahmad, is expected to land in Gujarat today to visit the proposed location of land the Indian government has decided to allocate to the Bangladeshi RMG exporters.One of the members of the delegation said that during the visit several meetings would be held with policy makers and high officials of India, and Bangladesh Garment Manufacturers and Exporters Association has already finalised the talking points over the business plan.During the visit of Indian prime minister Narendra Modi in Dhaka on June 7, business leaders demanded 50 acres of land in India for setting up a warehouse and distribution centre.The BGMEA president Md Atiqul Islam also expressed interest to Modi in setting up 1,000 retail shops for selling Bangladeshi RMG products across India to reduce the prevailing trade deficit between the two countries.Following the visit of Modi, the Indian authorities agreed to provide the land and asked the BGMEA to submit a detailed proposal.Bangladesh Garment Manufacturers and Exporters Association on Sunday made a formal proposal to India seeking allotment of a ‘piece of land’ for the Bangladeshi garment manufacturers to set up a warehouse and distribution centre in the neighbouring country.The BGMEA on June 14 submitted the proposal to Indian high commissioner Pankaj Saran at the High Commission of India in Bangladesh in Dhaka.In the proposal the BGMEA said that the land would be procured in the name of a company to be formed by the BGMEA, Bangladesh Knitwear Manufacturers and Exporters Association and others, to set up a warehouse and distribution centre primarily for RMG products.RMG exporters also said that they planned to invest approximately $25 million through the proposed company in India for setting up the warehouse and distribution centre.The trade body proposed establishment of around one thousand retail stores in various cities in India to display and sell Bangladeshi products, with a target to increase the export to approximately $1 billion in RMG products by the next few years.‘After submitting the official proposal the Indian government invited us to discuss on the business plan and to visit the location of the proposed land,’ Shahidullah Azim, vice president of the BGMEA told New Age on Saturday.‘During the two-day visit we will discuss the Foreign Direct Investment Policy, the legal requirements for securing title of the land, procedures of employment of expatriates and safety, environmental and compliance standards,’ he said.Azim said that during the visit they would find out the distance of the proposed location from the port, railway and airport, mode of transportation to other commercial centers, availability of gas, water and power, whether the 50 acre land came as a whole and workers’ wage structure.According to the BGMEA leader, the delegation will discuss how to proceed to set up warehouse and distribution centre along with outlets, cost of land, infrastructure, transportation and power and energy.‘During the visit we will try to gather information about customs duty, income tax, municipals taxes. Following the visit we will prepare a feasibility report on the business proposal,’ Azim said.If the project seems viable a company will be formed comprising of the garment and textile sector people for exporting to India, as BGMEA or BKMEA cannot run a business by themselves, he said.
