International News

Bangladesh now the largest importer of Indian cotton

December 26, 2016

Bangladesh is set to emerge as the largest importer of Indian cotton and cotton products, such as yarn and fabric, in the financial year 2016-17. This is a first time it would surpass China. India’s exports of such items to China, dropped to $416.14 million in the first half of the current fiscal, whereas exports to Bangladesh touched $613.16 million. Bangladesh has emerged as a major purchaser of cotton and cotton products in the recent years, as late as 2011-12 China’s purchases of cotton and cotton products from India were almost four times that of Bangladesh. Cotton and cotton product export has remained India’s largest export segment to China for years Bangladesh's increased demand is due to it being attracting more foreign companies from China, India and Pakistan. Bangladesh is increasingly becoming a regional garment hub due to low costs, availability of semi-skilled manpower, easy labour rules, and duty-free access to some of the lucrative markets such as Europe and the US. Arvind Mills, Rattha Overseas, Jay Jay Mills and Creative Casuals are some major Indian players who have set up production units in Bangladesh.