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Indian investors urged to set up leather industries
By Staff Reporter
Sat, 28 Apr 2007, 14:15:00
Urging the Indian entrepreneurs to set up industries here, apex trade-body FBCCI president Mir Nasir Hossain yesterday said they could be benefited through using Bangladesh's Least Developed Country (LDC) status to enter the developed countries markets.
"India can use the LDC status of Bangladesh to enter the developed countries through setting up leather industries here," he said while addressing as chief guest at the inaugural ceremony of a 2-day 'Buyer-Seller Meet' and 'Exhibition of Footwear Components' at the Bangladesh-China Friendship Conference Centre.
The High Commission of India and the Council of Leather Exports (India) has organised the 'Buyer-Seller Meet' and 'Exhibition of Footwear Components' in association with the Indian Footwear Components Manufacturers Association (IFCOMA) and Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB). Mir Nasir said, "India may consider to invest in Bangladesh's leather sector by bringing in technology to set up the export-oriented shoe industry to take advantage of LDC's market access and SAARC cumulation benefit." The FBCCI president said Bangladesh would be considered as the priority destination as many countries of the world afflicted by high labour costs and environmental concern are facing considerable pressure to move capacity to lower-cost locations.
The Indian businesses at the meet were informed that Bangladesh was lagging behind in proper use of leather. Bangladesh annually produces 86 million square feet of fine-quality leather, but the export earning from this is only slightly over US $ 257 million whereas Vietnam producing almost about the same quantity of leather has an export earning of 2 billion US dollars out of the leather sector.
"For the sake of value addition we need to build new capacity rapidly in leather-goods industry. With the desired expansion we will need more quantity of shoe and leather-goods components," Nasir said.
Stressing the need for further increasing connectivity the Indian High Commissioner Pinak Ranjan Chakraborty said the two neighbouring countries obviously need it for more trade and business. "Policymakers need to be more active to increase trade between the two countries," the Indian envoy said.
The High Commissioner apprised the business audience that India had already simplified its trade policies and many Bangladeshi items were enjoying reduced export duty on the Indian market. He mentioned that during the fiscal year 2001-02, Bangladesh exported goods worth US$ 50 million to India while the amount stood at US$ 242 million for FY 2005-06.
Executive chairman of the Board of Investment Nazrul Islam informed the audience that currently 41 companies were exporting leather and leather goods and Bangladesh's products were gradually gaining credibility like the world-class brand in the overseas markets.
LFMEA President Saiful Islam said that Bangladesh now uses 4 per cent of its total produced leather and exports the rest. "We can earn 2.5 times more foreign money if we can use 10 per cent of the total produced leather." He also expected to gain 40 per cent growth in leather-item export in this fiscal year, up from 36 per cent in the last fiscal year.
The exhibition will remain open for the visitors from 10:00 am to 6:00pm. Some 28 Indian companies are participating in the fair for showcasing the products and potential of the sector
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