Home / Knowledge / News / Textiles / 'India can be liberal in trade ties with Bangladesh'
'India can be liberal in trade ties with Bangladesh'
05
Jun '15
When Prime Minister Narendra Modi visits Dhaka on June 6-7 for building a stronger political relationship with the strategically positioned neighbouring country, bold moves are expected to take the mutual economic relations much beyond cotton and textiles industry which dominates the bilateral trade, an Assocham paper has pointed out.

“Composition of India’s export and import basket related to Bangladesh shows growing intra industry trade in cotton textiles sector. For instance, raw cotton is the single largest item of export to Bangladesh accounting for a share of more than a quarter in India’s total exports to Bangladesh. Also Bangladesh is sourcing dyeing materials and a variety of filament yarns for its textile industry from India’,’ the Assocham paper on BIMSTEC said.

The paper has analysed India’s economic engagement with each of the BIMSTEC members including Bangladesh, Mynamar, Sri Lanka, Bhutan, Nepal and Thailand.

With Bangladesh, the second largest member of the BIMSTEC in terms of population, India’s trade is governed by SAFTA framework. India-Bangladesh trade has increased over the years but the share of Bangladesh in India’s total imports remains miniscule. Share of Bangladesh in India’s imports has remained around 2 per cent in recent years while India has consistently maintained a trade surplus with Bangladesh.

“With such a huge trade surplus in our favour, India can afford to be much more liberal towards its neighbor in granting market access. In fact, while a fair competition is welcome, India and Bangladesh can get together in jointly tapping the global textiles market with advantage of cost effective Bangladeshi workforce, while India can provide support in technology, branding, scale etc” Assocham president Rana Kapoor said.

Of the total bilateral trade of $6.65 billion , India’s exports comprised $6.16 billion while imports were less than $500 million, leaving a large trade surplus of $5.68 billion.

As much as 14 per cent of India’s total exports to Bangladesh consist of machinery and capital goods with close to $500 million of exports of transport equipment consisting of automobiles and auto parts. India’s imports from Bangladesh consist of primary products such as betel nuts, jute fibre/yarn, oil cakes, fish etc. India is also importing increasing volumes of cotton apparel and accessories after New Delhi granted duty free access to Dhaka on a range of cotton made up articles. (SH)

Fibre2fashion News Desk – India

Must ReadView All

Textiles | On 22nd Apr 2017

Strong rupee & weak trade to affect textile exporters

Textile and apparel exporters' earnings and EBITDA margins will be...

Textiles | On 22nd Apr 2017

Myntra acquires InLogg

With an aim to strengthen supply chain and logistics, Flipkart-owned...

Textiles | On 22nd Apr 2017

Aditya Birla Group launches new variant Liva Crème

After its successful launch of high quality fabric Liva in 2015,...

Interviews View All

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search