India, a promising RMG destination

[TopCat]

What a ridiculous stuff it is!!! When bangladesh export around 18 billion USD worth of RMG all aroud the world... and import 3 billion USD worth of stuff from India in a legal way... then how come such a low amount of export to a so called friendly neighbour!!!

Bangladesh must make sure it can export more then 3 billion USD worth of product to India to gain a trade advantage or to nill the trade deficit.

As majority of the indians are poor and can not afford high end product so bd should definitely look forward to capture as much market as possible even if bharti government try to impose a trade barrier by utilizing cheap labour force and product price.

Big industries are not interested in exporting to India as the quota volume are too small for them to take orders from Indian buyers. They want full relaxation of Quota so that they can take big order like 2/3 million pieces per order.

 

[Roybot]

India should encourage its own RMG industry in the poorer parts like Bihar and Orissa. Bangladesh should concentrate on the developed market as it has been, cause you make more money there?

Also export to Australia! I am yet to see anything made in Bangladesh here in Australia, its all made in China, with the occasional made in India.

 

[Capt.Popeye]

Is your hurt burning... do not worry soon your 20 billion worth of home grown market will be in our dominance...

This is just the beginning... soon we will start taking over one after another Indian companies once this power crisis is resolved using LDC and other benefit that bangladesh has.

Refer the underlined part:
Do the raw materials; i.e. the staple fibre for Bangladesh's RMG industry come from Bangladesh? Which means that: does BD grow the cotton or produce the polyester yarn in BD?? As I know it, it is not so; Bangladesh is only providing the labour input in to the RMG sector, because of cheap BD labour costs. If that remains the only advantage, then BD industry will remain highly vulnerable. Tomorrow Myanmar will be able to take over, because labour is even cheaper there. And day after tomorrow; it will be Mongolia or Botswana.

Till BD is able to address the raw materials issue, its growth trajectory can remain highly volatile- here today, gone day after tomorrow!

 

[TopCat]

Dude,Ambani's and TATA can purchase every bangla companies

but they wont be able to survive here as SME dominates most business here. Too many people would be their competitor unlike India.

 

[tallboy123]

but they wont be able to survive here as SME dominates most business here. Too many people would be their competitor unlike India.

Even ur friend Sami said the unimaginable..atleast mine was a little realistic..
But his comments were Unimaginable...

 

[TopCat]

India should encourage its own RMG industry in the poorer parts like Bihar and Orissa. Bangladesh should concentrate on the developed market as it has been, cause you make more money there?

Also export to Australia! I am yet to see anything made in Bangladesh here in Australia, its all made in China, with the occasional made in India.

Well most of the exporter to India are very small enterpreneur who has average 20/30 employees. Even people in bordering areas started their own garment factory only to export to India. I experinced few of them in Naogaon, Rajshahi, Rangpur, Jessore. The people who worked once in Dhaka factories gone back to their home town and started their own factory. Its not the big factories who are exporting to India with some exception ofcourse.

Regarding Australia its just a Chinese backyard and very hard to compete in that market.

 

[tallboy123]

India should encourage its own RMG industry in the poorer parts like Bihar and Orissa. Bangladesh should concentrate on the developed market as it has been, cause you make more money there?

Also export to Australia! I am yet to see anything made in Bangladesh here in Australia, its all made in China, with the occasional made in India.

u r right,we should concentrate on own own garment industry..it will help .people of states like Bihar orissa to grow....
We should decrease our import of garments and we people should depend on domestic products...
Hope Nitish kumar does something about it

 

[Roybot]

Well most of the exporter to India are very small enterpreneur who has average 20/30 employees. Even people in bordering areas started their own garment factory only to export to India. I experinced few of them in Naogaon, Rajshahi, Rangpur, Jessore. The people who worked once in Dhaka factories gone back to their home town and started their own factory. Its not the big factories who are exporting to India with some exception ofcourse.

Regarding Australia its just a Chinese backyard and very hard to compete in that market.

Fair enough, so I guess you are saying that these people/factories aren't big enough to venture out in European and US market?

 

[TopCat]

Refer the underlined part:
Do the raw materials; i.e. the staple fibre for Bangladesh's RMG industry come from Bangladesh? Which means that: does BD grow the cotton or produce the polyester yarn in BD?? As I know it, it is not so; Bangladesh is only providing the labour input in to the RMG sector, because of cheap BD labour costs. If that remains the only advantage, then BD industry will remain highly vulnerable. Tomorrow Myanmar will be able to take over, because labour is even cheaper there. And day after tomorrow; it will be Mongolia or Botswana.

Till BD is able to address the raw materials issue, its growth trajectory can remain highly volatile- here today, gone day after tomorrow!

There is a catch in textile industry. Throughout the history, none of Textile driven country produced their native cotton. Starting from England, Germany, then came to Japan, Taiwan etc. Cotton was always abundant and you can source them from multiple of different places and Africa still untapped.

The basic industrialization starts from textile which employes huge number of manpower. Its not only money how it helps, rather as it incorporate large segment of human population which in turn teach them discipline, educated, polished and eventually change the complexion of the whole nation. Its just the first step to promote urself from clay footed peasant to urbanised citizen. I am glad that Bangladesh maintaining the basics and certainly other industry will follow through which will be more technology intensive and will employ lesser number of manpower. Dont take it otherwise, but India just missed that opportunity instead it is too dependant on service industry and a significant amount of its citizen which are just falling behind.

 

[TopCat]

Fair enough, so I guess you are saying that these people/factories aren't big enough to venture out in European and US market?

There are all types of industry big/small compliant/non compliant. To export in europe/usa/japan you have to be compliant and these smaller ones just cant afford to invest that kind of money. They have capital ranging from 4-10 lacs where the bigger ones are now 100's of crore industry.

 

[Roybot]

u r right,we should concentrate on own own garment industry..it will help .people of states like Bihar orissa to grow....
We should decrease our import of garments and we people should depend on domestic products...
Hope Nitish kumar does something about it

Yeah we need to take inspiration from Bangladesh, 80% of RMG employees are women. If the women of Eastern India start earning, that will change a lot of trends for these backward states. If we are just able to fulfill the local demand that should be able to make a lot of difference. Lets hope someone thinks along these lines.

 

[axisofevil]

Is your hurt burning... do not worry soon your 20 billion worth of home grown market will be in our dominance...

This is just the beginning... soon we will start taking over one after another Indian companies once this power crisis is resolved using LDC and other benefit that bangladesh has.

If you're complaining about tariffs take a good look at what you are charging for access to the Northeast thru Bangladesh. You guys should work with us not against us. You guys always got something bad to say about India even though we assisted you guys in your struggle for Independence. ungrateful bastards....

 

[Roybot]

There are all types of industry big/small compliant/non compliant. To export in europe/usa/japan you have to be compliant and these smaller ones just cant afford to invest that kind of money. They have capital ranging from 4-10 lacs where the bigger ones are now 100's of crore industry.

Yes Yes I understand that, I happen to know few people who own garment factories around Narayanganj?

So smaller companies export to India and bigger companies export out to the developed world? Makes sense. What about the supplies to the garment factories? Like you know accessories and dyes and what not? Is Bangladesh making it locally or the factories are sourcing it from outside?

 

[TopCat]

Yes Yes I understand that, I happen to know few people who own garment factories around Narayanganj?

So smaller companies export to India and bigger companies export out to the developed world? Makes sense. What about the supplies to the garment factories? Like you know accessories and dyes and what not? Is Bangladesh making it locally or the factories are sourcing it from outside?

I cant recall the exact number but it should be around 80% which are locally produced.

 

[Capt.Popeye]

There is a catch in textile industry. Throughout the history, none of Textile driven country produced their native cotton. Starting from England, Germany, then came to Japan, Taiwan etc. Cotton was always abundant and you can source them from multiple of different places and Africa still untapped.

The basic industrialization starts from textile which employes huge number of manpower. Its not only money how it helps, rather as it incorporate large segment of human population which in turn teach them discipline, educated, polished and eventually change the complexion of the whole nation. Its just the first step to promote urself from clay footed peasant to urbanised citizen. I am glad that Bangladesh maintaining the basics and certainly other industry will follow through which will be more technology intensive and will employ lesser number of manpower. Dont take it otherwise, but India just missed that opportunity instead it is too dependant on service industry and a significant amount of its citizen which are just falling behind.

That is the point that I was trying to make to Sami; who was trying to be gung-ho about BD's growth in RMG. Luckily, Myanmar is an international 'pariah' but that is where a potential threat to BD exists.
About India's dependence on the service industry segment. Don't get too taken in by the fact that it is (arguably) the top dollar earner. That is the reason its in the limelight. But more people are employed in light engineering; but that does not get talked about because it mainly caters to the domestic sector. Similarly, the automotive sector which is growing rapidly. And the domestic sector is as important as the export sector. That is the final insurance against the vagaries of the international economy. And real and abiding growth comes out of domestic consumption.