FDI's invited in textiles from India anticipating demand
24 Jan '06
2 min read
At the inaugural ceremony of third India Textile Exhibition (ITEXPO) 2006, yesterday, Jute and Textile Minister Shajahan Siraj said increasing demand for fabric and yarn for expanding Ready Made Garment(RMG) industry requires setting up of facilities to satisfy demand through Foreign Direct Investment (FDI).
Man-made textile items like polyester, rayon, nylon and blended fabrics manufactured by 28 enterprises were put up at the exhibition organized by the Synthetic and Rayon Textiles Export Promotion Council (SRTEPC), India, along with Indian High Commission in Dhaka.
Substantial investment for spinning, weaving, knitting, knit-dyeing and woven fabric processing units would be required in the coming years, it was conveyed.
It is pertinent to note that South Asia Free Trade Agreement (SAFTA) and the Bangladesh, India, Myanmar (Burma), Sri Lanka, Thailand - Economic Cooperation (Bimstec) trade agreements would create increased demands for fabrics and yarn, opined the Minister.
Investment by Indian enterprises to take advantage of the market opportunity, will increase trade relations between Bangladesh and India.
Indian exports to Bangladesh amounts to Rs200 crore which is 2 percent of total Indian exports worldwide.
Tipu Munshi, President Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Fazlul Huq, President Bangladesh Knitwear Manufacturers' and Exporters' Association (BKMEA) also attended the inaugural session.
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