High costs, stiff labour laws drive textile mills to B’desh
“Another crucial reason is that garments exports to Europe from Bangladesh is duty-free. Many Indian mills that have not yet set up base in Bangladesh still have their agents there to source supplies,” says Premal Udani, chairman of the Apparel Export Promotion Council. This means Bangladesh is snatching away buyers from India, as traditionally Europe accounts for around 30% of India’s total textile exports.
“The result is Bangladesh, which was trailing India in apparel exports as late as 2005-06, has not just overtaken us, but its exports of around $25 billion are 70% higher than ours,” says another executive.
Be the first to comment.