Rupee fall may destroy Bangladesh Economy

[Bonkers]

The ongoing slide of the Indian currency is poised to cause some major dents to Bangladesh’s garment business abroad, seeing that the two neighbouring countries compete in the same segments globally.The rupee slumped to a record low of 68.75 to the dollar yesterday amid growing concerns over the health of the Indian economy.Although both the Bangladeshi taka and the Indian rupee now have more or less the same denomination value against the dollar, the rupee’s downtrend suggests it is bound to get cheaper in the near future and in the process, divert Bangladesh’s orders to India.Particularly affected will be Bangladesh’s exports to the US, where the South Asian neighbours enjoy a level-playing field but India has an edge due to its own cotton production.“Even the confirmed orders will go to India if the rupee continues to decline this way,” said Abdus Salam Murshedy, a former president of Bangladesh Garment Manufacturers and Exporters Association.Over at the European Union, Bangladesh’s 12.50 percent duty benefit under the relaxed Rules of Origin policy, too, is no longer looking to be a big advantage over India, said Mustafizur Rahman, executive director of Centre for Policy Dialogue.David Hasanat, managing director of Viyellatex Group, one of the major garment exporters to the European market, however, thinks “India’s currency advantage would not last forever”. “Normalcy will return after a certain period — Bangladesh, in the end, would not be that big a loser.”But it is the country’s growing garment exports to India that would be the biggest casualty of rupee’s depreciation.“The domestic garment makers there would now be able to cater to the orders at rates equal to, if not better than, Bangladesh’s,” Rahman said.Murshedy, who is also the president of Exporters Association of Bangladesh, sought policy support from the government to maintain the high export growth to India, which started growing in stature after the neighbouring country extended a zero-duty benefit in November 2011.In fiscal 2012-13, garment exports to India increased 36.70 percent from the year before to $75.21 million, according to data from Export Promotion Bureau.

http://www.thedailystar.net/beta2/news/rupee-slide-to-dent-garment-exports-from-bangladesh/

 

[TopCat]

They said the same thing when PK rupee fell but instead of BD its PK's garments gone to gutter.

Indian rupee fell because Indian business cant compete, not that Indian business forcibly devalued rupees.

 

[Bonkers]

The future of Bangladeshi exports | Dhaka Tribune

Another good read why Bangladeshi underwear industry will collapse soon.

 

[[Bregs]]

Bangladesh will be definitely affected as the measures by there central bank won't be sufficient if Indian currency continued to falls

 

[eastwatch]

I visited for a consecutive three days the textile fair in Odaiba, Tokyo in July. I can attest that Indian garments are not made for an international market, at least not the way BD garments are. Their items were mostly for India's local market.

Note one more point, traditionally we the Muslims of Bengal have been doing the Darji work for many centuries. Tailoring work comes naturally to us. It may not be so easy for Indian makers to displace us so short cut.

Our garments manufacturers' fears are misplaced. Even INR at 80 to a dollar will not make big harm to our industries. People are saying INR may go even below 80.

 

[jaunty]

RAW at work again, trying to destroy Bangladeshi economy.

 

[oFFbEAT]

Areee......think about our own economy....................
Even when we are in trouble....we don't stop teasing others.............Indians!

 

[[Bregs]]

I visited for a continuous three days the textile fair in Odaiba, Tokyo in July. I can attest that Indian garments are not made for an international market, at least not the way BD garments are. Their items were mostly for India's local market.

Note one more point, traditionally we the Muslims of Bengal have been doing the Darji work for many centuries. Tailoring work comes naturally to us. It may not be so easy for Indian makers to displace us so short cut.

Our garments manufacturers' fears are misplaced. Even INR at 80 to a dollar will not make big harm to our industries. People are saying INR may go even below 80.

Now a days Darji work has been taken over by high tech sewing machine with multiple color threads, you need to see any garment factory in India then respond

 

[Mr cool]

Rupee fall may destroy Bangladesh Economy.............. I think title should be Rupee fall may CHALLENGE Bangladesh Economy bd's r u accept

 

[neehar]

india exports all the three varieties of cotton high end,low end and medium..but our govt maintains caps over exports according to the local demand.so its not that we export everything we have..there is a limit to export cotton which is regulated by the govt and beyond that even if demand is there india wont export

 

[Imran Khan]

don't bring pakistan in your economy economy games kids

 

[Syed Naved]

traditionally we the Muslims of Bengal have been doing the Darji work for many centuries. Tailoring work comes naturally to us. It may not be so easy for Indian makers to displace us so short cut.

True , but also true that many technology already extinct like moslin. Now only Jamdani type work is our pride.So , you may agree or not but now in sub continent Pakistani and Indian work is more improved than Bangladesh's . Specially traditional works.

And Now Garment sector is in trouble. Now it need more modernization . In this no doubt Pakistan,India can help us lot ; specially Pakistan.

The Kashmiree garment work is a legend like Moslin. But Kashmiree work exist and Mosleen extinct.Infact many other types too. Bangladesh need to improve more.

Rupee fall may destroy Bangladesh Economy.............. I think title should be Rupee fall may CHALLENGE Bangladesh Economy bd's r u accept

Typical Indi Troll

 

[Syed Naved]

Now a days Darji work has been taken over by high tech sewing machine with multiple color threads, you need to see any garment factory in India then respond

The garment work of Kashi & Kashmeer is unique. But yes, If we compare between West & East Bengal's saree work there is no doubt there is no competitor of Dhakai Jamdani with that of Kolkata's work. But If we compare 3 sister work than it comes-

Kashmiree fabrique, Sarees from Kashi & Dhakai Jamdani. Hope I'm not so wrong here.

 

[mb444]

People lacking rudimentary understanding of economics, capital flow or supply chain should not write articles relating to economics.

Indian economy was inflated with foreign capital particularly as the euro zone faltered.

This cheap money india borrowed heavily....... Unfortunately the capital was squandered did not lead to corresponding levels economic development. Result a few shiny building and A huge debt. As the investor sees that the ride is over they are moving money away and hey presto the speculative bubble bursts.

Fall in rupie is a correction.

As for it making India more competitive .... If only things were so simple. In garments in BD there is an entire supply and logistics chain supporting it. That exists for India as well. But in order to exploit the situation India needs to up its capacity. How is it going to do that? Whilst it's exports become cheaper it's input will become more expensive like capital machinery etc.
One assumes India has not been sitting on excess capacity.

Rupee falling will not impact BD in the slightest. India on the other hand will become the latest victim of speculative capital flow, a completely non productive parasetic phenomena

 

[Contrarian]

They said the same thing when PK rupee fell but instead of BD its PK's garments gone to gutter.

Indian rupee fell because Indian business cant compete, not that Indian business forcibly devalued rupees.

Atleast use some bare minimum level of intelligence when posting.

Pakistan cant compete in economy because their country is in almost civil war, no electricity to industries, no security for their businesses.

The Indian rupee has fallen not because Indian business cant compete, but because Indian Government has been fiscally loose, spending a lot on unproductive subsidies.

India however having a lower Rupee means that our exports get more competitive, and unlike Pakistan, Indian businesses have the capital to expand production capacity if more orders come their way.