The pangs of the ongoing global crisis have beenfutile in affecting the buoyant apparel export figures of Bangladesh.


Bangladesh is creating history by surpassing India in exporting garments to US. Thecountry's exports to US have increased drastically by 10% since 2008 onwards,while the export figures of India fell by 3%. Recession is having a devastatingeffect on all export dependent economies. Collapse of the economies in US, andEU has caused a spiky decline in the export dependent, and developing countries.Despite global recession, textile exports surge in Bangladesh.


Countries like India and China that are performing well inthe global forefront have recorded decline in their sales figures during therecent past in contrast to the double digit expansion during the past decade. Otherhigh performing counterparts like Indonesia, Malaysia, Philippines, and Thailand are also hit badly by the global crisis. But, the sterling performance of Bangladesh in exporting textiles, and apparels during the recession struck economy isappreciable.


Bangladesh - A Low-end Textile Exporter:


Textile exports from Bangladesh displays a buoyantperformance. Knitwear and woven garment exports have increased by 41.8%, and36.2 percent during December 2008 comparatively over the previous yearsfigures. Since Bangladesh exports low end textile products, their sales areleast affected by the economic crisis. Shoppers from the income decliningcountries, who prefer to restrict their shopping budget, prefer to buy low endgarments imported from Bangladesh.


&sec=article&uinfo=<%=server.URLEncode(1921)%>" target="_blank">Fibre2fashionhad an exclusive interaction with Mr. Surinder Anand, Executive Secretary ofGarment Exporter's Association. He was assertive about the performance of Bangladesh clothing industry in the global market. He says, "Bangladesh apparel sector has overtaken India apparel exports, due to full support and blessings oftheir Government and the labor laws are more flexible and conducive to operatelarge labor intensive factories to obtain economy of scale"


The Executive secretary spoke about the Government supportfor the textile sector. He says, "The Bangladesh Government is alsoproviding more fiscal benefits including exemption of export profit from thelevy of income tax besides other fiscal benefits. Bangladesh garmentmanufacturers get fabric and other raw materials at international prices as ifthey were buying these inputs from local suppliers".


The increasing cost pressures in India, and China and other East Asian countries are further enhancing the strategic shift of Bangladesh. 78% of the export earnings of the country come from textile and garment exports. Thesector accounts for 45% of the industrial employment having nearly 4 millionpeople involved. Major exports are polyester filament fabrics, man-madefilament mixed fabrics, PV fabrics, viscose filament fabrics and man-made spunyarns. Garments such as knitted, woven shirts and blouses, trousers, skirts,shorts, jackets, sweaters and sportswear, constitute a major share of exports.


Mr. Surinder also evaluated the support of Indian Governmentregarding textile exports. He says, In India the procedural hassles and delaysproves expensive and discouraging for entrepreneurs to adopt this route. TheIndian Govt. had recently reduced duty drawback rates and lowered bank interestrate subvention on export credit which must be restored immediately.

 

Listing out the advantages that Bangladesh exporters have over India he said "first and foremost is the lower manufacturing cost due to cheap labor, simplified labor laws; economies of scale because of bigger and larger manufacturing units; availability of fabric at competitive rates and the last simplified procedures in Bangladesh".


Global countries are facing major downslide in their economies due to the slowdown in US, which proves to be the biggest importer of clothes. Amidst the entire slump, performance of Bangladesh in the global clothing market has come under the limelight. Textile manufacturers of Bangladesh are likely to remain competitive in the global market in the years to come.


References:


  1. &sec=article&uinfo=<%=server.URLEncode(1921)%>" target="_blank">http://www.thedailystar.net
  2. &sec=article&uinfo=<%=server.URLEncode(1921)%>" target="_blank">http://www.textileworldasia.com