Recently, Bangladesh's textile and apparel industry is facing a major challenge as India enjoys high cost advantage, posing a potential threat to capture a large share of the global market. Abdullah Mohammad Talha, MD, Noman Terry Towel Mills Limited, has expressed apprehension about the future competitiveness of Bangladesh, given the various factors in favor of India.
India benefits from one important factor—the deepening relationship between India and the West. This combination has put Bangladesh in a challenging position, limiting its ability to achieve strong competition and break free from the middle-income trap. Unlike Bangladesh, India has diversified its assets and resources, enabling a multi-pronged approach to economic development.
India has an advantage because of its cheap labor force compared to Bangladesh, where labor costs have risen slowly. Currently, Bangladesh's salary structure is comparable to that of India, with garment assistants earning around US$150 per month and operators receiving up to US$180 per month.
The cost of electricity contributes significantly to India's cost advantage over Bangladesh, as India receives power from the grid at about 7 cents per kWh, while Bangladesh faces a higher cost of about 12.7 cents per kWh.
Abdullah Mohammad Talha urges concrete policies and proactive measures like combating corruption in Bangladesh to maintain the growth and strength of the textile industry. Without action, Bangladesh could lose its dominant position in the global market in the face of India's growing momentum.
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