Bangladesh textiles remain more competitive than India's
Updated: Apr 14, 2014 04:29:24pm
New Delhi, Apr 14 (KNN): The small scale textile industry of India feels that drastic increase in minimum wage of labourers in Bangladesh together with their high cost of production still makes their products much more competitive than the textiles produced in India.
The minimum monthly wage for workers in Bangladesh has increased by almost 79 per cent to USD 68 last year.
“In spite of the increase in their minimum wage, their cost of production is lower when compared to India. The costs of their products are still most competitive in the global market,” said President of Udyog Vihar Industries association, Animesh Saxena, who is also a textile exporter.
Last year after the eight-storey Rana Plaza building collapsed in Dhaka's Savar district, killing more than 1,100 workers, most of the buyers of the Bangladesh's garment shifted to countries like India, Vietnam etc. It had slowed the garment sector to the lowest rate in the decade.
“Last year India and some other countries got advantage of the Bangladesh’s garment buyers shifting to other markets. But Bangladesh is much cheaper than India and now they are spending a lot on the security system in their garment factories.
“Their buyers cannot leave Bangladesh. Once the peak season comes, we will come to know the results,” Saxena added.
However, the Bangladesh garment factory owners say that they have to absorb the costs of high wages, safety improvements etc. And they are not even able to pass on the price to the buyers.
Bangladesh's ready-made garment exports have grown by just 7.1 per cent in January compared with the same month a year earlier, less than a quarter of the year-on-year growth rate recorded in November, reports media. (KNN/SD)
The minimum monthly wage for workers in Bangladesh has increased by almost 79 per cent to USD 68 last year.
“In spite of the increase in their minimum wage, their cost of production is lower when compared to India. The costs of their products are still most competitive in the global market,” said President of Udyog Vihar Industries association, Animesh Saxena, who is also a textile exporter.
Last year after the eight-storey Rana Plaza building collapsed in Dhaka's Savar district, killing more than 1,100 workers, most of the buyers of the Bangladesh's garment shifted to countries like India, Vietnam etc. It had slowed the garment sector to the lowest rate in the decade.
“Last year India and some other countries got advantage of the Bangladesh’s garment buyers shifting to other markets. But Bangladesh is much cheaper than India and now they are spending a lot on the security system in their garment factories.
“Their buyers cannot leave Bangladesh. Once the peak season comes, we will come to know the results,” Saxena added.
However, the Bangladesh garment factory owners say that they have to absorb the costs of high wages, safety improvements etc. And they are not even able to pass on the price to the buyers.
Bangladesh's ready-made garment exports have grown by just 7.1 per cent in January compared with the same month a year earlier, less than a quarter of the year-on-year growth rate recorded in November, reports media. (KNN/SD)
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