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Modi backs Bangladeshi investment in Gujarat
08 Jun '15
2 min read
Prime Minister Narendra Modi gave his support on Sunday to a Bangladeshi proposal to invest $25 million in selling Bangladeshi garments in India, the main Bangladeshi business group said.
In a meeting on Sunday, the federation of Bangladesh chamber of commerce and industry told Modi it was seeking 50 acres of land either free of cost or at a nominal price in Gujarat.
"We told him that we want to set up warehouses and retail shops, and for that we will invest $25 million. The purpose is to sell and distribute our garments products directly," said Matlub Ahmed, president of the chamber.
"If we get this facility, then our sales will rise to $1 billion from the present $300 million in the next three years."
After the meeting, he told a news agency that Modi had promised "all cooperation and support" for the proposal.
During his visit, Modi also promised to help to reduce India's huge trade surplus with Bangladesh.
Bangladeshi exports were worth $24 billion in the fiscal year that ended in June 2014.
The textile industry is an important contributor to the economy, with duty-free access to Western markets having helped to make Bangladesh the world's largest apparel exporter after China.
But the industry, which supplies many Western brands such as Wal-Mart, Tesco and H&M, has faced pressure after a string of fatal factory accidents, including a building collapse in 2013 that killed more than 1,130 people. (SH)
In a meeting on Sunday, the federation of Bangladesh chamber of commerce and industry told Modi it was seeking 50 acres of land either free of cost or at a nominal price in Gujarat.
"We told him that we want to set up warehouses and retail shops, and for that we will invest $25 million. The purpose is to sell and distribute our garments products directly," said Matlub Ahmed, president of the chamber.
"If we get this facility, then our sales will rise to $1 billion from the present $300 million in the next three years."
After the meeting, he told a news agency that Modi had promised "all cooperation and support" for the proposal.
During his visit, Modi also promised to help to reduce India's huge trade surplus with Bangladesh.
Bangladeshi exports were worth $24 billion in the fiscal year that ended in June 2014.
The textile industry is an important contributor to the economy, with duty-free access to Western markets having helped to make Bangladesh the world's largest apparel exporter after China.
But the industry, which supplies many Western brands such as Wal-Mart, Tesco and H&M, has faced pressure after a string of fatal factory accidents, including a building collapse in 2013 that killed more than 1,130 people. (SH)
Fibre2fashion News Desk – India
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