India announced duty-free access to items from Bangladesh through the trade agreement and after a month, in October. As a result exporters from there have registered orders for readymade garments worth an estimated $90 million from India. The order inflows in just one month amounted to a quarter of the $360-million worth of readymade garments that Bangladesh is estimated to have shipped into India in the 12 months of the last fiscal (2010-11).
Keeping the current trends in mind, Bangladeshi industry expects apparel exports to India to touch the $2 billion mark over the next three years. The India-Bangladesh Chamber of Commerce and Industry (IBCCI) delegation, in the course of deliberations with Indian textile and clothing industry bodies, conveyed that October's order inflow estimates were collated by the Bangladesh Government based on local industry inputs. The orders came in from both, Indian retailers serving the domestic Indian market and Indian exporters from Indore and Tirupur.
Though the Bangladesh garments sector lacks a raw material base, it is at advantage due to the cost competitiveness in terms of low labour cost and cheap fabrics import, in its industry compared to the Indian clothing industry. It has also gained an edge even over the Chinese garment industry in specialised clothing items such as woven garments and knitwear.
Source : fashionunited.in