The recent visit of Bangladesh Prime Minister Sheikh Hasina to India is likely to expedite Comprehensive Economic Partnership Agreement as both nations showed interest in deepening trade ties. Currently, Bangladesh imports more yarn and fabric from India and exports finished products like apparel. The CEPA may change this equation.
India imported apparel worth $474.522 million from Bangladesh in 2021, but exported apparel valued at $28.717 million. India was at disadvantage in home textile trade as well. India imported home textiles of $133.008 million and exported products of value $2.473 million.
But when it comes to textile raw materials India enjoys big advantage The trend reverses in terms of raw materials. India last year exported fibre earning $1430.146 million, importing the yarn worth $72.848 million only. India’s export of yarn and fabrics were $1968.735 million and $812.234 million respectively during the last year, while imports of yarn and fabrics were $52.274 million and $78.735 million in the same period.
Bangladesh is an emerging star in the global textile industry as it has succeeded in converting itself into a global factory for textile products. Bangladesh apparel exports touched $42.61 billion during last fiscal 2021-22 (July-June), increasing by of 35.67 percent over the previous fiscal. On the other hand, India’s apparel exports increased 33 percent to $16.023 billion in the last fiscal 2021-22 (April-March).
Value added textile stakeholders in India want a curb on exports of raw material to Bangladesh as the importing country after value addition offers tough competition to India textile products. The conveniently ignore the fact that Bangladesh is pressed could explore other markets for raw material exports. Like Pakistan or China. Moreover, Indian need to consume its cotton by making yarn which would have to be exported. It is better in both countries identify their strengths and be supplementary rather than competing with each other.
