Bangladesh became the largest exporter of woven garment items to India in 2014 superseding China, sector insiders said. The country’s export share of woven garments to Indian market reached 29 per cent in 2014 compared to that of 26.96 per cent by China, they added. China, however, remained as the largest knit product exporter to the Indian market. According to Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh exported woven products worth $ 85.73 million and knit items worth $27.88 million to India in 2014. But India imported woven items worth $ 80.04 million and knit products worth $ 93.63 million from China in the last calendar year. Bangladesh’s top 10 woven items shipped to India in 2014 included men’s suits, jackets and trousers worth $ 52.40 million while the country fetched $ 19.20 million by exporting men’s shirts to the neighbouring country. Similarly, top 10 knitwear items exported to India last year included T-shirts, singlets and vests worth $ 13.47 million while jerseys, pullovers and cardigans fetched $ 6.89 million. The country’s total apparel exports to India stood at $ 113.61 million, showing a 31.12 per cent growth in 2014 compared to that of 2013, BGMEA data showed. Bangladesh’s apparel export to India was only $ 16.06 million in 2010. Textile and garment industry emerges as a prominent sector in exploring avenue to boost bilateral trade between India and Bangladesh and reducing a huge trade gap, industry people said. People aged between 25 and 50 are the highest population who are 45 per cent of India’s total population and this working age group can be a good target for Bangladesh, they added. India which has about $40 billion apparel market offered duty-free quota of 8.0 million pieces of sensitive garment items since 2008. It was increased by 2.0 million more pieces in April 2011. Later, India has allowed duty-free and quota-free access to 46 items, 45 of them are RMG products. “India is becoming one of the new emerging markets for Bangladesh and with duty-free facility, Bangladesh’s export to the neighbouring country is gradually increasing,” Reaz-bin-Mahmood, vice-president of BGMEA, said. Moreover, the ongoing compliance initiatives taken to ensure workplace safety help the sector gain the customers’ confidence, he said, adding that Bangladesh is still a competitive market for readymade garments due to rising cost in China and shortage of workers there. Faruque Hassan, managing director of Giant Group, said India imports a large volume of woven items as it has many small knit factories. Though Bangladesh enjoys duty-free and quota-free facility for its apparel products in Indian market, there are still some obstacles in the form of countervailing and non-tariff barriers in exporting goods to India, he added. Replying to a query, the BGMEA leader said China which produces fancy and value added knit products especially that of ladies items is playing a leading role in that particular segment in the Indian market. He has expressed the hope that Bangladesh’s knit sector will gradually grab the market. Khondaker Golam Moazzem, additional research director of the Centre for Policy Dialogue (CPD) said, “The most important thing is to introduce Bangladeshi products with that of Indian with its competitiveness in terms of price and other trade related issues.” India has a strong production base and its local suppliers/distributors are one of the challenges in entering the market, he said and stressed the need for more networking and confidence building with them.
Source: https://www.thefinancialexpress-bd.com/2015/05/06/91547
