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Opening RMG units in India could help Bangladesh warehouses

If Bangladesh RMG makers wish to establish warehouses in India, they would have to set up manufacturing units in the country, as the Indian government has hinted at a meeting held in Gujarat between the two parties. Shahidullah Azim, BGMEA Vice-President Shahidullah Azim, said that the government, during the meeting mentioned that if Bangladesh wanted to open a warehouse in India, they would have to establish manufacturing units for their interest, creating employment. Bangladesh would have to move forward with this policy proposed by the Indian government.

Azim was on a two-day visit to India and had travelled to Gujarat to inspect the possibility of setting up a warehouse to grab the local market there. A five-member delegation visited three economic zones during the trip, which included Sanand Industrial Estate under Gujarat Industrial Development Corporation, Amitar Green Hi-Tech Textiles Park Private Limited and Viraj Integrated Textile Park to assess if a warehouse could be set up. Azim said that they had selected Sanand Industrial Estate to set up a warehouse, based on the facilities offered by the zones’ management. Besides, Azim said that the state had uninterrupted power connection and other facilities while there is no obligation of allowing trade union there.

Bangladesh can get land at a cost of Rs 3,500 per sq. mt. while per unit electricity price at Rs 6.5, according to the offer. High land prices, according to Azim need to be bargained for at the high level G2G meetings. The domestic market in India is of $32 billion and offers duty-free access. Azim feels that if Bangladesh can establish a warehouse and distribution centre here, it could grab more market.