Apparel Online Bangladesh Magazine December Issue 2018 | Page 12

MINDTREE Mohammed Sohel, Managing Director, Bangla Poshak Limited Emerging economies are considered ‘emerging’ because their high economic growth originated from high GDP growth, mainly based on export of commodities, goods and services. In other words, these economies possess large consumers with high per capita income. For example, India has a population of 1.339 billion (2017) with a per capita income of US $ 1,963.55 (2018); more importantly, most of these economies have been able to maintain moderate-to-high GDP growth. Because of this moderate-to-high per capita income, India is seeing increased demand for consumer goods which is met both through domestic products and imported finished products. Our view is very positive as Bangladesh’s exports to India have seen a sharp rise by 142 per cent to US $ 375 million in the first quarter of the current fiscal year, thanks to duty-free market access. The earnings were US $ 155 million in the same period last year, according to the data of Export Promotion Bureau (EPB). Omar Chowdhury, MD, Hydroxide Knitwear We don’t have to make any special effort as our buyers directly source the total requirement and ship out to the individual countries; sometimes a product reaches India even before it can reach shelves in Europe. Kazi Mahmudul Hasan, Operations Officer, at UAE Exchange LLC In my opinion, for better business with India, non-tariff barriers need to be removed. In this case, the Indian Government has to show its sincerity to the cause. And this is more so considering the fact that India is already enjoying many facilities from Bangladesh including transhipment facilities and using sea ports in Bangladesh. The apparel sector alone fetched US $ 145.10 million, or nearly 35 per cent of total export earnings. Knitwear products contributed US $ 37.76 million, while woven items earned the remaining US $ 107.35 million. In fiscal 2017-18, Bangladesh’s RMG exports to India stood at US $ 279.19 million, up by 115 per cent compared to US $ 129.81 million in FY ’17. Meanwhile, business people have urged Bangladesh Government to initiate bilateral talks with the Indian Government to explore more windows for Bangladeshi goods. BGMEA Senior Vice President Faruque Hassan has said that the association has been trying to create an ecosystem in the Indian market for the last couple of years. But we have some barriers; we should not just consider RMG as the key to Bangladesh GDP. India is an emerging economy, and in an open market, one has to give opportunity to import all kinds of products. Some of the barriers that I am talking about are as follows: Service: Services in which restrictions are there include insurance, banking, securities, motion pictures, accounting, construction, architecture and engineering, retailing, legal services, express delivery services and telecommunication. The Indian Government has a strong ownership presence in major service industries such as banking and insurance. Foreign investment in businesses in certain major service sectors, including financial services and retail, is subject to limitations on foreign equity. Foreign participation in professional services is significantly restricted, and in the case of legal services, is prohibited entirely. However, we have some other barriers as well which are import licensing; technical barriers to trade; cosmetics (registration requirements); food (package size and labeling requirements); livestock genetics; alcoholic beverage standards; sanitary and phytosanitary barriers; customs procedures; Government procurement; intellectual property rights protection; telecommunications services and equipment barriers to entry; electronics and information technology equipment – safety testing requirements, remote access policy; barriers to digital trade; internet services; intermediary liability; taxation, etc. Md. Shakirul Islam India is a potential market for us and there is no doubt about it. However, as far as transportation of goods to India is concerned, it’s not very easy and smooth. I would rather say it is not good enough, from my personal experience. The reason behind the same is because Benapole is the sole land port to export to India and personally I have experienced complexity in the documentation process and time-consuming and tedious cargo unloading. I feel this has to be made much easier to make export to India more cost-effective and easier.  Maashed Abdullah, Director, Dressman Limited We have a design studio in China and we are planning a product profile that will suit the Indian market. After all, if we want to do well then, we have to have the right products. POST YOUR COMMENTS We are not against the policy of the Indian import policy and other rules, but if these few barriers are removed, then it will be a bigger platform not only for Bangladesh but also for the global market to have a good entry in India. This will help India’s economy while at the same time being helpful for all the exporting countries like Bangladesh. Without these barriers, India will be the best place to export in coming days. 12 Apparel Online Bangladesh | December 2018 | www.apparelresources.com www.apparelresources.com [email protected] NEXT MINDTREE QUESTION We are almost at the end of 2018, ready to step into 2019… How has 2018 been for you as far as business is concerned? We would also like to hear from you about the achievements/successes/landmarks that may have come your way in the past year which gave your business a new high. Please share your views on the same.