Low Cost To Attract India Textile Manufacturers To Turn To Bangladesh

Many garment manufacturers in India have shifted their production bases or set up new factories in neighboring Bangladesh to make use of them. Low cost Labor costs and entry into the US and European markets. tariff Concession Discount Policy.

Nair, Secretary General of India Textile Industry Federation, said: "Bangladesh's labor cost is almost 1/3 of India's DK. The average monthly labor cost of Indians is more than 7000 rupees. The People's Republic of Bangladesh It's only about 2500 rupees. "

Nair said that so far, 35 India textile companies have opened factories in Bangladesh, mostly recently opened factories.

According to the Bangladesh investment board, India textile company has opened 35 factories in Bangladesh and invested nearly US $80 million.

Bangladesh is listed in the least developed countries, enjoying tariff free exports to European markets, while India companies need to pay 9.6% of the tariff.

Textile enterprises are facing cut throat competition. Profit margin Very low and cost difference 15-20% is a big deal. Therefore, Bangladesh attracts more and more people.

Even though China can not compete with Bangladesh, China's market share is being grabbed by Bangladesh in the US and European markets.

The textile industry is probably the most labour intensive industry. Bangladesh is not only cheap labor, but also easy to obtain labor compared with India and China.

In addition to labor costs and tariff preferences, Bangladesh's raw material and real estate costs are no less expensive.