The proposed Indo-Bangladesh textile pact will grant duty-free entry to Bangladeshi garment products into the giant Indian market. If approved, Bangladeshi apparel will give tough competition to Nepali products and most probably grab large share of their markets. Thus, Nepali garment industry now has to prepare itself for the new challenge.
Kiran Saakha, President of Garment Association of Nepal (GAN), explains to Fibre2fashion, “Yes, this pact will affect Indo-Nepal trade and slow down its growth-rate significantly. For free trade and bilateral trade, entrepreneurs need to travel a lot. Hence, Nepal has always had an advantage when it came to business with India. There are hardly any issues regarding Visa, and currency also can be converted easily. It is a better option as it is convenient for language, as well.”
He assures, “Since Nepal is a landlocked country, we don't have any ports for the transport and this makes it more difficult us to compete with Bangladesh. However, we are working hard and will try our best. We will use our strong points to bounce back.”
As for exploring new export markets, Saakha says, “Yes definitely. We are looking to venture into new markets and this is never ending process. But it will be difficult for us to find a market as good as India, especially due to its geographical proximity.”
He further informs, “GAN has presented several proposals to the Government. Nepal imports most of its raw materials from China. Thus, we have suggested that train route to China be opened for trade purposes, which will reduce overall production cost. This will inturn help Nepal sell finished goods to India at cheaper rates, giving us an edge over Bangladesh.”
Fibre2fashion, News Desk - India
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