India becoming one of the most promising market & FDI for Bangladesh
Indian Special Economic Zones coming up in Bangladesh for Indian investors
With over 4000 km common boundary, conducive political and commercial atmosphere, Bangladesh is definitely becoming a favourable destination for the Indian garment manufacturing entrepreneurs to invest. The political situation has changed significantly; over the last six years, the Bangladesh government has taken a series of strong measures to address issues of concern for India and the country is actively supporting sub-regional integration. Compared with other neighbouring countries, the Bangladeshi economy is growing steadily; the annual average economic growth rate has been over 6 per cent for the last decade.
The overall infrastructure is improving rapidly; new highways are coming up, the existing ones are being revamped. Both the countries have agreed to resume the activities of the century-old Chilahati land port in Nilphamari district to facilitate trade between the two countries.
A new brigade of professionals are emerging thanks to the textile and fashion institutes which has helped a lot in controlling the import of professional expats from India, Sri Lanka, Turkey, Philippines and even the European countries; these expats come on hefty packages, nevertheless they are the ones who have shaped up the Bangladesh RMG sector and placed it to the position of being the second largest garment exporting country after China with an annual turnover of USD 30.61 billion in the last fiscal year and looking at touching USD 50 billion by 2021.
Investment in Bangladesh to enjoy duty free access to EU and many more countries
Indian manufactures, producing fabric, garments or accessories can tap the access by investing and manufacturing in Bangladesh. Recent trends show that joint ventures are a better way to tap the country’s markets while investing from India. Bangladesh also has tariff-free access to European Union, Canada, Japan, Australia and other developed countries except to the US.
Adarsh Swaika, the acting high commissioner of India in Bangladesh shared that very soon the development work of the Indian Special Economic Zone, which has been awarded by the Bangladesh Economic Zones Authority to Indian investors, will be commissioned. Besides this, two more economic zones, at Bheramara and Mirsarai will also be developed soon for the Indian investors.
A few garment manufacturing companies forayed in Bangladesh by putting up garmenting units and today, they stand at par to the top exporting Bangladeshi companies. Ambattur Clothing, a Chennai-based company, started operations in Bangladesh in 2007 and later set up its own manufacturing units through acquisitions. Other big player from North India, Pearl Group, set up its garment manufacturing unit with an installed capacity of 35 Million pieces annually, producing knit products and woven bottoms (both denim and non-denim). A new state-of- the-art additional factory is going to be commissioned in April 2019. The company also has its buying houses in Bangladesh.
Indian Zipper manufacturer, Tex Zipper also has its manufacturing unit in the country. The state-of-the -art manufacturing unit in Bangladesh established in 2010. The total production capacity in this unit is 500,000 zippers in a day.
India becoming potential buying country for Bangladesh
The duty-free access and the rising demand for garments at competitive prices from India, has positioned Bangladesh as top most sourcing country for India. Garment export from Bangladesh to India rose significantly in the last two years; in fiscal 2017-18, it doubled to USD 278.68 million, as per Export Promotion Bureau-Bangladesh. Bangladesh Commerce Minister Tipu Munshi said, “We have the capability to export more and we can cross the export turnover of USD 2 billion (to India) over the next couple of years. The minister also highlighted the issue of imposing anti-dumping duty on Bangladeshi jute and jute goods by the Indian authority so that the long-pending dispute could be resolved amicably. Swaika said a river cruise between Bangladesh and India would begin from March this year to facilitate the movement of people.Bangladesh Features India Retail