Bangladesh to set up textile park in Gujarat
Bangladesh is set to join Gujarat’s textile park bandwagon, reports Times of India.
The Indian daily reports Bangladesh heavily relies on Indian cotton for its garment industry and has proposed to set up a textile park in the state of Gujarat.
Bangladesh has narrowed down to Kadi near Ahmedabad for the project which involves an initial investment of over US$ 35 crore.
The park will have spinning units with cumulative capacity of 1 lakh spindles, reports the Indian daily. Bangladesh has sought around 100 acres of land from the state government for the project.
Last month, a high level trade delegation comprising representatives of the Federation of Bangladesh Chambers of Commerce and Industry, Bangladesh Cotton Association and Bangladesh Garment Manufacturers and Exporters Association visited Gujarat. These apex trade bodies have now approached the state government with a proposal to set up a textile park.
"Initially, they will invest in yarn manufacturing and later on may include garment manufacturing. Bangladesh already imports yarn from Gujarat, so the park will provide them the cost advantage. The project is very significant from the point of view Indo-Bangladesh trade promotion," said Mamta Verma, industries commissioner, Gujarat government.
Globally, Bangladesh is among the top garment manufacturing and exporting countries. However, it has to bank on India, especially Gujarat, for cotton and yarn.
"Gujarat has aggressive textile policy with incentives for spinning activities. Availability of power and raw material (cotton) is attracting many companies to set up their spinning units in the state," said Dr PR Roy, chairman, Diagonal Consulting India.
Bangladesh imports close to 55 lakh bales (one bale weighs 170 kg) annually, of which 70% is accounted by India, while Gujarat has the largest share in cotton exported to Bangladesh.