Ummid Assistant

Applications open for Manmohan scholarship at Cambridge

Opportunities for Indian students in US

Welcome Guest! You are here: Home » Business & Economy

Garment industry: Bangladesh gains at India, China expense

Sunday February 03, 2013 03:08:18 PM, Gyanendra Kumar Keshri, IANS

Agra: India's garment industry is losing out to Bangladesh due to rising input costs, especially on labour and tax incentives, a minister has said.

Bangladesh Commerce Minister Ghulam Muhammed Quader said rising input costs in India and China - the two big players in readymade garments business - offered a good opportunity for his country to expand its readymade garments business.

"India is shifting away from the readymade garments business. There has not been any significant investment in India in the readymade garments industry in the recent years," Quader, who was in India to attend the Partnership Summit in Agra, told IANS in an interview here.

He said rising wages and other input costs would make the readymade garments business uncompetitive in India and China.

"This will be a big opportunity for Bangladesh to develop its readymade garments business. We are already benefiting from it," he said.

The garment industry has become the mainstay of the Bangladesh economy, accounting for more than 80 percent of the country's exports. Bangladesh's exports in 2012 were $24.3 billion, of which garments contributed $19 billion.

Quader said availability of cheap labour was the main reason for the sharp increase in readymade garments business in Bangladesh in recent years.

He said many Chinese companies have shifted their production facilities to Bangladesh to take advantage of cheap labour.

"Many Chinese companies are opening production facilities in Bangladesh. Even for their domestic use, they are supplying garments form our country. I hope the Indian companies will also do the same," Quader said.

"Wages have been going up in India. Other costs are also going up with rising living standards," he said.

Apart from cheap labour, Bangladesh's readymade garments industry also benefits from tax incentives on exports, especially to European countries.

Bangladesh, which is categorised as a least developed country (LDC), enjoys duty-free access to European markets, while Indian firms have to pay 9.6 percent duty.

Labour costs in Bangladesh are almost one-third of those in India. The average monthly labour cost in India is over Rs.7,000 per person, while it is just around Rs.2,500 in Bangladesh.

Due to duty concessions and low labour and other costs, garments produced in Bangladesh become 15-20 percent cheaper than those in India.

This is a big threat to the $55 billion Indian textiles industry, which provides direct employment to over 35 million people, the second largest after agriculture, and contributes to nearly four percent of the country's gross domestic product (GDP) and 12 percent to the total export earnings.

Quader said comparative advantage in the garments sector would help reduce Bangladesh's trade deficit with India.

Merchandise trade between India and Bangladesh was $5.51 billion in 2012, out of which India's export was $4.94 billion and import was $0.57 billion, according to India's commerce and industry ministry data.

Quader said although Bangladesh was keen to reduce the trade gap, there was no reason to be concerned.

"Our imports have increased. Some people take it in a negative sense because balance of trade is heavily in favour of India. But these are the products that we need. If we don't buy these from India we will have to buy them from some other countries at higher prices," he said.

Quader said India-Bangladesh economic and political relations have strengthened in the recent years. He said $1 billion soft loan offered by India would help develop infrastructure in Bangladesh, especially rail and road networks.



(Gyanendra Kumar Keshri can be contacted at gyanendra.k@ians.in)


 


 


 



 




 

Home | Top of the Page

Comments

Note: By posting your comments here you agree to the terms and conditions of www.ummid.com

Comments powered by DISQUS

i

I

More Headlines

No India think tank in Global 50!

Better deal in offing for property buyers

New cancer treatment with minimal side effects

Book fiesta: 1,100 exhibitors from 23 nations at World Book Fair

Israeli security forces dismantle Palestinian protest camp

Betul’s Sakadehi Gram Panchayat in MP gets National MGNREGA Award

Sonia Gandhi meets gang-rape victim's mother, cries

Palestinians erect tent village to protest settlement expansion

Haasan agrees to cut 'Vishwaroopam' scenes objectiobale to Muslims

 

Top Stories

Dhule Civil Hospital record contradicts claim of large scale police injuries

Barely few days after the release of new video footages showing police vandalism and the consequent suspension of few police personnel, a New Delhi based NGO submitted in the Supreme Court the the Dhule   »

Dhule Violence: Changing Anatomy of Communal Violence

It was a police action, not riot: Maharashtra legislator

 

  Most Read

Haasan agrees to cut 'Vishwaroopam' scenes objectiobale to Muslims

"I've arrived at a consensus with my Muslim brothers. We've agreed to cut some scenes from the film which they found to be objectionable," Kamal  »

No 'bad Muslims' in my film: Kamal Haasan

Jayalalitha defends 'Vishwaroopam' ban, to sue Karunanidhi

Israeli security forces dismantle Palestinian protest camp

Israeli security forces used force Saturday to disperse Palestinian activists attempting to set up a camp in West Bank in protest of Israeli expansion of settlement, witnesses and medics said, reported Xinhua.   »

Palestinians erect tent village to protest settlement expansion

 

  News Pick

Women activists urge president not to sign sexual crime ordinance

Some women's organisations Saturday urged the president not to sign the ordinance on criminal law amendments passed by the union   »

MNREGA aids financial inclusion, second Green Revolution: PM, Sonia

Prime Minister Manmohan Singh Saturday said his government's flagship MGNREGA scheme had accelerated the pace of financial inclusion in villages while Congress chief Sonia Gandhi   »

Accused in Dhule professor assault case a university senate member

One of the accused arrested by the Dhule police on Thursday in a criminal case involving physical assault on a college  »

Dhule professor beaten by Bajrang Dal, VHP activists

82-yr old Indian-American inventor awarded science medal

President Barack Obama has awarded Rangaswamy Srinivasan, an Indian-American co-inventor of LASIK eye surgery, with a national medal for science, technology and innovation along with 22 other researchers and inventors.  »

 

Picture of the Day

Prime Minister Dr. Manmohan Singh presenting the award to the District Collector, Visakapatanam V. Seshadri for promoting social equity in MGNREGA implementation, at the 8th Mahatma Gandhi NREGA Divas Sammelan, in New Delhi on February 02, 2013.

 

Recommend the story to your friends

 

 
 
 
 
 
 
 
 

RSS  |  Contact us

 

| Quick links

News

 

Subscribe to

Ummid Assistant

 

National

Science & Technology

RSS

Scholarships

About us

International

Health

Twitter

Government Schemes

Feedback

Regional

History

Facebook

Education

Register

Politics

Opinion

Newsletter

Contact us

Business

The Funny Side

Education & Career

 

 

Ummid.com: Disclaimer | Terms of Use | Advertise with us | Link Exchange

Ummid.com is part of the Awaz Multimedia & Publications providing World News, News Analysis and Feature Articles on Education, Health. Politics, Technology, Sports, Entertainment, Industry etc. The articles or the views displayed on this website are for public information and in no way describe the editorial views. The users are entitled to use this site subject to the terms and conditions mentioned.

© 2012 Awaz Multimedia & Publications. All rights reserved.