Bangladesh has emerged as one of the largest apparel exporting countries in the world. Being India’s neighbour, India has various comparative advantages due to geographical proximity including logistical advantage, to export of textiles. Bangladesh is a growing market for man-made fibres. In 2013-14 Bangladesh emerged as the fifth largest market for Indian man-made fibres.

Bangladesh imported around $3 billion of man-made fibre textiles from the world during 2013 of which India’s share was around 8 per cent ($0.23 billion). Since, India’s share in Bangladesh’s total import of manmade fibre textiles was only 8 per cent, there is huge scope for increasing exports from India. Exports of these textiles from India to Bangladesh have steadily grown to reach $230 million during 2013-14 recording a growth of 32 per cent compared to the previous year.

Bangladesh is importing its required textiles including man-made fibre textiles from China, India, Thailand, South Korea, Indoia, etc. However, the strong and growing ready-made garment industry is not supported adequately by local textiles and there is a huge demand-supply gap, which has been covered through imports.

Bangladesh manufactures for international brands like Tommy Hilfiger, Gap, Calvin Klein, H&M, etc, and retailers like Target and Walmart have sourcing offices in Dhaka. Exports of apparel from Bangladesh have recorded a growth of 12 per cent during 2013 as compared to the previous year.

Enhanced trade ties in textiles between India and Bangladesh will be beneficial for both countries. Moreover, with imports of Indian MMF textiles Bangladesh can cut costs and Indian MMF textiles complements Bangladesh garmenting industry rather than compete with it. The government of India has taken pro-active initiatives to facilitate bilateral trade between India and Bangladesh. This will help in increasing exports of Indian MMF textiles to Bangladesh.