Apparel exporters eye $3b export to India
DHAKA, Oct 11 (BSS) – Encouraged by the duty-free access to Indian apparel market, Bangladeshi readymade garment (RMG) exporters are expecting to fetch about three billion US dollars from the Indian apparel market of US$30b.
Business leaders said local exporters have already started RMG export to India after it offered duty and quota-free market access of 46 Bangladeshi textile products during its Prime Minister Manmohan Singh’s September 6-7 Dhaka visit.
“There’re no guidelines on Bangladesh’s garment export to Indian market with regard to tariff facility as it is a matter of business people,” Abdul Matlub Ahmad, president of India- Bangladesh Chamber of Commerce and Industry (IBCCI), told BSS today.
On guidelines for export of duty-free garment products to India, Matlub said a target has been set to export goods valued one billion US dollars to the potential market.
“Everything is basically on track. We will achieve the target.”
Echoing the Matlub, President of Bangladesh Garment Manufacturers and exporters Association (BGMEA) M Shafiul Islam Mohiuddin said some local manufacturers have already started exporting RMG goods to India keeping in mind the tariff treatment.
Mohiuddin said the Indian prime minister announced the duty- free market access at the request of Bangladesh and a notification was issued too soon after the announcement.
Therefore, he said, there is nothing to make guidelines on the tariff treatment.
Leading global chain stores and corporate houses have started doing business in India, he said, adding that there is a huge potential of Dhaka-Delhi trade.
Abdus Salam Murshedy, former BGMEA president, said local exporters are discussing with Indian retailers and pricing being given to customers.
“We have a lot of preparations to kick off apparel export to Indian market in a big way. I think it is the beginning and we will get new orders from India next year,” said Murshedy, also president of Exporters Association of Bangladesh (EAB)
Commerce Minister Lt Col (retd) Faruk Khan said he would lead a team to India within a month or two to explore the RMG market and give retailers an overview about Bangladesh apparel industry.
Khan said the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) leaders, mainly apparel exporters, would be in the team.
He said Bangladesh’s apparel export to India is on the sharp rise as it has exported RMG goods worth 35 million US dollars to India last year.
Bangladesh’s imports from India in 2009-10 totaled 3.2 billion US dollars against its exports of just $304.63m with the trade deficit remaining nearly at $3b mark in the fiscal.
India is Bangladesh’s second most important import source after China and ranks fifth as Bangladesh’s export destination.