The Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) wishes to develop a 1,000-stores retail chain in India to sell apparel. The agency aims to invest 25 million dollar in the retail chain along with a logistics hub for the purpose.
Matlub Ahmad, President of FBCCI, whose Nitol Niloy Group assembles vehicles for the Tatas along with his colleagues Atiqul Islam, Chief of the Bangladesh Garment Manufacturers & Exporters Association, met Prime Minister Narendra Modi to discuss their plan.
Bangladesh, the world's largest garment exporter, got access to the Indian market when India removed all tariffs on Dhaka's manufactures. However, exports to India account for just 2 percent of its worldwide sales. Garment manufacturing costs in Bangladesh are 60 percent less than in India, according to the Confederation of Indian Textile Industry. This could give Bangladesh an advantage in the 50 billion dollar Indian ready-to-wear apparel market. The Indian apparel market accounts for 5 percent of the global market and is expected to grow to 7 percent, valued at 124 billion dollar, by 2020.