Indian garment firms invest in Bangladesh

05/10/2011
Government sources in Bangladesh have said garment manufacturers from India are responsible for setting up 35 apparel factories in the country, with a total investment of nearly $80 million.

According to reports, the major attraction for the Indian companies is that labour costs in the neighbouring country are one-third of the level in many regions of India.

Observers say that infrastructure and energy challenges are higher in Bangladesh, but even allowingt for the increased cost of doing business stemming from that manufacturing costs in Bangladesh are 60% of those in India.