DHAKA: Bangladesh has overtaken India in apparel exports this year as for the first nine months, its exports stood at $2.66 billion, ahead of India’s $2.27 billion, according to a survey reported by state-run BSS news agency on Wednesday.
In 2008, both the countries were at the same level of $10.9 billion with each having 3 percent of global apparel exports.
It said, India’s export volume is down 80 percent this year for two reasons: one, the global economic downturn and increasing competition from Bangladesh, Vietnam and Sri Lanka. During the downturn, buyers looked for cheaper deals and Indian exporters were unable to compete on costs due to rising raw material and power costs, the survey found.
The second reason: many Indian firms are setting up units and offices in Bangladesh to avail the benefits of duty-free access. Prominent among those who have set up units in that country are House of Pearl Fashion (two units) and Raymond (one unit).
“Bangladesh has a cost edge of 9-29 percent across various products. The country has duty-free access to European markets and labour is cheap. It is more profitable to export from Bangladesh, than from India,” the survey quoted Orient Craft Exports Managing Director Sudhir Dhingra as saying.
House of Pearl Fashions Chairman Deepak Seth said the company’s units in Bangladesh had been operating ‘efficiently and profitably’.
Source : dailytimes.com