According to the Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA), the country’s knitwear manufacturers are getting strong signals from India that it wants engage in trade. The BKMEA says that India’s north eastern states in particular should be targeted.

Fazlul Hoque, President of the BKMEA told journalists at a press conference yesterday that a Bangladesh business delegation to India had had fruitful discussions with its counterpart, who are convinced there good opportunities for business with Bangladesh. Mr Hoque was a member of the entourage of Bangladesh’s Prime Minister Mrs Sheikh Hasina during her recent visit to India.

Mr Hoque said that the BKMEA had earlier received strong resistance from the Indian apparel manufacturers, but this time they had shown keen interest and had also recommended to their government that it increase the duty-free quota of readymade garments to 14 million per annum from 8 million per annum.

"The Indian retail market is as big as $27 billion's worth and it is growing at a pace of 18 per cent, and it is not possible for the Indian manufacturers to supply the commodities. We proposed them that since they need partner as far as RMG products are concerned, Bangladesh can be a good partner," Mr Hoque told reporters.

According to Mr Hoque, Indian businesses were not aware that Bangladesh can manufacture either high quality products or branded goods for Western markets. In order to remedy this, the BKMEA has been advised by its Indian counterpart to hold ‘single country fairs’ in selected Indian cities in order that producers can showcase their quality goods to potential buyers.

The Bangladesh Garment Manufacturers & Exporters Association (BGMEA), which also went on the trade mission, says there is a huge opportunity in India and that Bangladesh as a small country should take advantage of it. BGMEA President, Salam Murshedy said he did not see any negative attitude on the part of the Indian business people during the recent visit and that India is highly developed in the fashion field and Bangladesh can learn lessons from it.

Bangadesh’s businesses have however faced visa problems while visiting India but the Indian government has assured trade representatives that it would look into the matter. Many Bangladesh business people believe that India’s north eastern ‘seven sister states’ are an extension of the Bangladesh market and the country should exploit the opportunities available. About the 300 million people are said to live in the north-eastern part of India.

Other non-tariff barriers which are said to exist include poor road networks, inadequate banking facilities, storage, certification and visa. Industry experts believe however, that such barriers can be removed through negotiation.

Source: The Financial Express