Bangladesh races ahead of India in knitwear exports

[CaPtAiN_pLaNeT]

Bangladesh races ahead of India in knitwear exports

Bangladesh races ahead of India in knitwear exports

Neha Pal

Posted: Thursday, Oct 20, 2011 at 0310 hrs IST
Tags: Knitwear Exports | India’s Knitwear Industry
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New Delhi: Bangladesh has emerged as the second largest knitwear exporter after China despite procuring yarn from India at an extra cost. India’s knitwear industry, despite its inherent strength of a strong raw material base, is losing out to its counterpart in the neighbouring country owing to high cost of labour, power and water. Inflexible labour laws and slippages in power and water supplies add to the woes of the Indian knitwear clusters.

According to the latest figures of the Confederation of Indian Textile Industry, both India and Bangladesh had a share of around 2.5% in the global knitwear market in 2005, but Bangladesh leaped forward to become the second largest exporter of knitwear whereas India failed to match this pace.

China continues to be the biggest knitwear exporter with exports worth $53.8 billion accounting for 33.5% of the world knitwear exports.

In case of t-shirts, Bangladesh enjoys the first place compared to India’s fifth position and in case of pullovers and cardigans, Bangladesh enjoys the second position compared to the tenth position of India. Even in case of baby garments, India has the fourth position as compared to the second place of Bangladesh.

Confederation of Indian Textile Industry secretary general DK Nair told FE: “Productivity in Bangladesh’s knitwear industry in terms of output per shift is estimated at 1.5 times that of Tirupur’s knitwear cluster, the mainstay of Indian industry. Bangladesh knitwear industry sources yarn from India which results in an additional cost of around R8-12 per kg of yarn as against Tirupur’s knitwear cluster that enjoys local availability of raw material.”

One of the main reasons for India losing its position to Bangladesh is the higher costs of labour, water and power in Tirupur and West Bengal, which are its main knitwear clusters.

Bangladesh knitwear industry operates at a higher scale with small units housing around 100 stitching machines and large units having around 1,000 stitching machines on an average. Further, the labour laws in the country allow contract labour.

According to CITI, Bangladesh knitwear industry is eyeing the Indian market

as a key export destination as a result of the quota-free export limit of 10 million pieces for Bangladesh’s readymade garments to India. “Owing to the cost advantage that Bangladesh enjoys, the former will be able to supply products at a cheaper price to the Indian market, which is likely to further impact the

operations of the Indian knitwear industry and

eventually the employment opportunities in the sector,” said Nair.

The Tiruppur knitwear cluster is also facing issues related to effluent treatment, resulting in closure of 700 processing units until they comply with zero liquid discharge norms (ZLD). Under these circumstances, some units have resorted to outsourcing wet processing operations to Gujarat, Punjab, West Bengal and other states. This has resulted in an increase in dyeing

costs from R70-90 per kg to R170-225 per kg.

 

[raavan]

congratulations. keep it up...

 

[kobiraaz]

after Pakistan, Now indian Companies are relocating to Bangladesh!!

 

[great]

Ya but its only knitwear. India exports close to million automobiles every year. Where is Bangladesh in that regard?

 

[CaPtAiN_pLaNeT]

Ya but its only knitwear. India exports close to million automobiles every year. Where is Bangladesh in that regard?

Do not worry... bangladesh is gradually establishing its manufacturing based industries... car and ship manufacturing is getting priority in that. Already different car manufacturing plant is going to start production and even your tara is going to setup its car manufacturing plant here. So just stay tuned. This is just the beginning.

 

[Avisheik]

Yes bd is doing very well in garments sector, it is time for us to move into manufacturing more value added product.

 

[Urbanized Greyhound]

Congratulations Bangladesh

Indian Labor laws are the worst in the world . Bangladesh has traditionally been strong in Small scale industries. Perhaps with reforms in Indian labor laws , we will reach to our garment manufacturing potential too.

Good to know they are planning to enter the Indian Domestic market . With increased competition , our industries too willl be forced to change their methods of working.

 

[DarK-LorD]

Do not worry... bangladesh is gradually establishing its manufacturing based industries... car and ship manufacturing is getting priority in that. Already different car manufacturing plant is going to start production and even your tara is going to setup its car manufacturing plant here. So just stay tuned. This is just the beginning.

He he.BD with 5.8-6% growth & 12% inflation crossing India in automobile exports.

Congrats BTW.

 

[LaBong]

Congratulations Bangladesh

Indian Labor laws are the worst in the world . Bangladesh has traditionally been strong in Small scale industries. Perhaps with reforms in Indian labor laws , we will reach to our garment manufacturing potential too.

Good to know they are planning to enter the Indian Domestic market . With increased competition , our industries too willl be forced to change their methods of working.

Like setting minimum wage as 800 Rs or something?

 

[CaPtAiN_pLaNeT]

He he.BD with 5.8-6% growth & 12% inflation crossing India in automobile exports.

Congrats BTW.

Educate yourself... this year BD is expecting 7% gdp growrth and expected to touch 8% by 2013 and 10% by 2017. N BD does not need to manufacture more cars then india. If BD can produce 100 k to 200k cars a year with respact to 1 million a year of india, this will be enough for her at this point. For example tagaz korea is expecting to produce 50000 cars a yeas alone. Even indian companies are planning to relocate in bangladsh.

 

[DarK-LorD]

Educate yourself... this year BD is expecting 7% gdp growrth and expected to touch 8% by 2013 and 10% by 2017. N BD does not need to manufacture more cars then india. If BD can produce 100 k to 200k cars a year with respact to 1 million a year of india, this will be enough for her at this point. For example tagaz korea is expecting to produce 50000 cars a yeas alone. Even indian companies are planning to relocate in bangladsh.

Actually You need to educate yourself.
IMF cuts growth projections for Bangladesh, other Asian countries.

http://www.google.co.in/url?sa=t&rct=j&q=bangladesh%2Bgrowth%2Bforecast%2Blowered%2B2011&source=web&cd=3&ved=0CC4QFjAC&url=http%3A%2F%2Fwww.hawker.com.bd%2Fnews_details.php%3Fnews_id%3D163204%26val_lan%3D1&ei=r9efToKMO4HmrAeWjrHrAg&usg=AFQjCNE8Mzog4uQIwkHUSnLVXcp6U84l2Q

 

[shuntmaster]

Congrats to Bangladeshis in becoming the world leader in underwear..
Now we all can say... Pehno tho pehno Bangal ki chaddi baniyan, Roopa ki nahi..

 

[Urbanized Greyhound]

Like setting minimum wage as 800 Rs or something?

Changing the labor laws go a long way in improving efficiency of our industry....

Despite having huge resources we are unable to realize our full productivity potential. Changing the rule about no women in night shifts , temporary workers , minimum wages etc will cut the costs .

Imho the minimum wages rule should be scrapped for certain industries.

 

[TopCat]

You cant pay lower wages if you manufacture products for big brands. But you can certainly pay lower wages where you make products to sell for non branded buyers and the market and value addition for that kind of products are not that big.

You should look into the followin areas.

Confederation of Indian Textile Industry secretary general DK Nair told FE: “Productivity in Bangladesh’s knitwear industry in terms of output per shift is estimated at 1.5 times that of Tirupur’s knitwear cluster

You cant have that kind of productivity from low skilled low paid workers.

 

[TopCat]

Educate yourself... this year BD is expecting 7% gdp growrth and expected to touch 8% by 2013 and 10% by 2017. N BD does not need to manufacture more cars then india. If BD can produce 100 k to 200k cars a year with respact to 1 million a year of india, this will be enough for her at this point. For example tagaz korea is expecting to produce 50000 cars a yeas alone. Even indian companies are planning to relocate in bangladsh.

Brother, most of the high growth sectors are out of calculation in the current base. If they were included then the current growth rate itself is more than 8%. For instance there is no growth in Public sector banks but private banks are excluded in the current base. Same goes for private sector Educationala institutes, hospitals, a significant activities of private mobile operator etc. High growth sectors are basically excluded. So you got to wait for the new base year which will be affective from next fiscal.