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B'desh garment sector has full blessings of its Govt - Exporters Body
Feb '09
Mr Surinder Anand
Mr Surinder Anand
Bangladesh, a small country adjacent to the eastern shores of India has recently created history by overtaking India, in shipments of apparel to the United States. From August 2008 onwards, the exports from the RMG sector from Bangladesh have grown by a remarkable 10 percent, while that of India fell by 3 percent.

This sterling performance of the Bangladeshi clothing industry has come about in the worst recessionary trends prevailing in global markets since September 2008, with the US, which is the biggest importer of clothing in the world, becoming the epicenter of the resultant slowdown in most of the key markets.

Fibre2fashion spoke to Mr Surinder Anand, Executive Secretary of Garment Exporter's Association who was categorical when he said, “Bangladesh apparel sector has overtaken India apparel exports, due to full support and blessings of their Government and the labour laws are more flexible and conducive to operate large labour intensive factories to obtain economy of scale”

He explained by saying, “The Bangladesh Government is also providing more fiscal benefits including exemption of export profit from the levy of income tax besides other fiscal benefits. Bangladesh garment manufacturers get fabric and other raw materials at international prices as if they were buying these inputs from local suppliers”.

Listing out the advantages, the Bangladesh exporters have over India he said, “first and foremost is the lower manufacturing cost due to cheap labour, simplified labour laws; economies of scale because of bigger and larger manufacturing units; availability of fabric at competitive rates and the last simplified procedures in Bangladesh”.

He was scathing of the Government of India, when he said, “In India the procedural hassles and delays proves expensive and discouraging for entrepreneurs to adopt this route. The Indian Govt. had recently reduced duty drawback rates and lowered bank interest rate subvention on export credit which must be restored immediately”.

Fibre2fashion News Desk - India

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