GARMENT INDUSTRY-BANGLADESH & INDIA

 

GARMENT INDUSTRY:BANGLADESH

POLITICAL UNSTABILITY KILLED IT

IT WILL NOW SHIFT TO INDIA

A COMPARATIVE STUDY

SARASIJ MAJUMDER

  The economic condition of neighbouring country Bangladesh has gone from bad to worse in the last 2 months. The industry for which it was once known with pride all over the world has come to a desperate condition now.  Thousands of people have become unemployed and work worth crores of TAKAS  (BANGLADESH’S CURRENCY) has been lost.

According to Hindustan Times, the recent situation in Bangladesh has broken the back of its textile industry. The situation is such that 1000 small and medium garment and textile units have been closed. Due to this, the government and businessmen have not only lost contracts worth Millions of Dollars, but millions of workers have also lost their jobs. Bangladesh  is craving for every single order now.

According to Bangladesh garment export data, Bangladesh's apparel exports reached a historic high of around $47 billion last year, surpassing the previous record established in 2022 by almost 10.27 percent.

Presently, big brands have started looking for their places in UP.

Textile Raw Materials: Although Bangladesh was a major textile and apparel exporter, it was importing textile raw materials like cotton and yarn because domestic supplies were insufficient. Metal and Non-Metal Buttons, threads, Needles, and Sewing Machines were major imports mainly from India, and also China.

The main products that India exported to Bangladesh were Refined Petroleum ($1.37B), Non-Retail Pure Cotton Yarn ($1.37 Billions), and Raw Cotton ($942Millions). Over the past 5 years the exports of India to Bangladesh have increased at an annualized rate of 14%, from $7.17Billions  in 2017 to $13.8Billions in 2022.

Major Importer : Apparel importer was European Union (EU) - the largest destination for Bangladesh's readymade garment (RMG). It witnessed an encouraging growth of 35.69% to $22.89 billion in the last calendar year, up from $16.87 billion in 2021. India also imported good amount of Bangladeshi Garments, without levying any duty.

Building of a textile park is almost complete on Lucknow-Hardoi road. Textile industry in Bangladesh will  now be facing a survival  crisis.

India’s Garment Industry:--

India is one of the world's largest producers of cotton, jute, and silk, and is responsible for 95% of the world's hand-woven fabric. India's garment industry is fragmented, with an estimated 27,000 manufacturers, 48,000 fabricators, and 1,000 manufacturer-exporters. 

Advances in technology have allowed Indian factories to produce garments at a lower cost than Western factories. 

India is one of the largest exporters of textiles and apparel in the world. In 2021-22, exports of ready-made garments grew by 30%.  and in the fiscal year 2022, the exports stood at US$44.4 billion. Slightly less than Bangladesh.

The textile and apparel industry is the second largest employer in India, providing direct employment to 45 million people and indirect employment to 100 million people. 

The textile and apparel industry contributes around 2.3% to India's GDP.

It has the potential to reach $100 billion, in short time. 

What is CM Yogi's preparation?

The ground work started in April-2023.

India's second PM MITRA Mega Textile Park was launched in Uttar Pradesh (UP), shortly after the first park was initiated in Tamil Nadu. The Indian government has approved total  seven Mega Textile Parks. The memorandum of understanding (MoU) between UP and the central government was signed  at an event in Lucknow, attended by Indian textile minister Piyush Goyal and UP chief minister Yogi Adityanath. 

The work of  textile park is already under progress,  in Lucknow-Hardoi districts, approximately 500 km east of New Delhi, and will span 1,000 acres of land. Eastern UP is home to several well-known traditional textile hubs. 

“Uttar Pradesh has rich tradition of textiles; India is a big market and consumer base. It is home to hardworking weavers and a skilled workforce. The setting up of the PM Mitra Mega Textiles Park across Lucknow and Hardoi districts will greatly benefit UP,” Prime Minister Narendra Modi stated one year ago. 

Many big brands contacted UP Chief Minister Yogi Adityanath government and the textile park on Lucknow-Hardoi road is in advanced stage of completion.. This park is planned to be built on 1,162 acres. About an year ago, an official related to the matter said  that the process of land allocation for the textile park has been started. Infrastructure work is also going on for this.

Which companies will come to UP?

Arvind Mills, Vardhman, Reliance Industries Limited and Ahuja Textiles Mills have contacted the Yogi government to set up their industry in textile park in UP. About 400 small and big units are in various stages of  being set up in this textile park. This will provide direct employment to 50 thousand people and will also create lakhs of indirect jobs.

Target of $100 billion export:

UP's MSME, Khadi and Textile Minister Rakesh Sachan says that all the big brands are working towards increasing their production to fulfil the new orders. The new textile park being built near Lucknow will give these companies an opportunity to increase their production. Electricity, water, roads and workforce will all be made available at reasonable rates in this park. The Government of India intends to take the export of clothes to $100 billion (about Rs 8.4 lakh crore) in the next 5 years.

JAI HIND! JAY SHRIRAM!

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