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B’desh invites Indian industry to set up JV units in textiles

SRTEPC’s Indian Textile Exhibition in Bangladesh evokes good response
E-Tex Staff - Mumbai

The Synthetic and Rayon Textiles Export Promotion Council’s (SRTEPC) exclusive Indian Textile Exhibition in Bangladesh from June 17-19, 2002, received a good response. The second in the series of the council’s market initiative efforts in Bangladesh, the latest edition attracted as many as 260 buyers in Bangladesh from the garment manufacturing companies, buyers, agents, wholesalers, etc.

Some of the 19 Indian participants generated a spot business of Rs 6.51 crore, whereas the others received serious enquiries, which they are confident will translate into concrete orders. According to council officials, all participants received good response at the fair.

Besides promoting interaction between the Indian and Bangladesh textile industries, one of the most important achievements of the event was the interactive meetings held between the Indian and Bangladeshi authorities. A delegation, led by Mr Sanjeev Saran, SRTEPC chairman, consisting of Mr R R Dash, minister of IHC, and Mr K K Jalan, director, MOT met Mr M D Aminur Rahman, secretary textiles, government of Bangladesh, Mr Suhel Ahmed Choudhary, commerce secretary, Mr Mahmudur Rahman, executive chairman of the Board of Investment of Bangladesh, and industry heads of the leading trade bodies, to discuss issues such as SAARC regional cumulation, and the ban on Indian yarn import through land route. Mr Saran stated that banning yarn import through the land route would add to the problems of the RMG exporters of Bangladesh, who were already reeling from the global recession. He stressed on the need for collaborative relationship between the two countries to strengthen trade in the post-MFA period.

He further invited the industry heads of the powerful trade bodies to send a high level delegation to India for discussing the possibilities of setting up joint venture units in Bangladesh with senior executives of the Indian MMF textile units, to enter into long term partnership in the textile/garment sector, which would eventually be beneficial to both. The meetings may have a positive impact on Indo-Bangla trade, as at present the commercial and political climate in Bangladesh is not very conducive for import of textiles from India. The Bangladesh authorities have raised concern over the BOP position with India, which favours India, and has accordingly requested the Indian government to address this issue immediately.

Facts about the Bangladesh textile industry

• Apparel sector accounts for more than 75 per cent of the forex earnings of Bangladesh
• USA is the single largest market for apparel exports from Bangladesh, accounting for around 45 per cent of its total RMG exports
• Bangladesh garment sector has become a US$ 4 billion foreign exchange earner, enjoying the status of the fifth largest apparel exporter, and the largest shirt and T-shirt exporter to the EU, and the sixth largest apparel exporter to the US
• Around 85 per cent of the total requirement of woven fabric, and 35 per cent of the total requirement of knit fabric are imported by the export oriented RMG industry for CMT and export
• There is demand for both fabric and yarn of different varieties of synthetic and its blend/mixture including cotton in Bangladeshi textile and garment sectors
• Knitting and apparel sectors are well established, and are growing further
• Weaving is comparatively smaller and hence continues to depend on imports
• Major strength is low cost or power and labour
• To face the post-MFA challenges, the government has adopted the strategy of backward linkages for knitting/RMG industry by means of increasing its spinning and weaving capacity to be self-sufficient in yarn and fabric requirement
• To encourage backward linkages, the government gives attractive incentives, and has created an investor-friendly atmosphere.