Gandhinagar, India (BBN)-After China, Bangladesh has also jumped on to Gujarat's textile park bandwagon.
The neighbouring country, which heavily relies on Indian cotton for its garment industry, proposes to set up a textile park in the state, reports The Times of India.
Bangladesh has zeroed in on Kadi near Ahmedabad for the project which involves an initial investment of Rs 240-300 crore.
To begin with, the park will have spinning units with cumulative capacity of 1 lakh spindles.
Bangladesh has sought around 100 acres of land from the state government for the project.
Last month, a high level trade delegation comprising representatives of the Federation of Bangladesh Chambers of Commerce and Industry, Bangladesh Cotton Association and Bangladesh Garment Manufacturers and Exporters Association visited Gujarat.
These apex trade bodies have now approached the state government with a proposal to set up a textile park.
"Initially, they will invest in yarn manufacturing and later on may include garment manufacturing. Bangladesh already imports yarn from Gujarat, so the park will provide them the cost advantage.
The project is very significant from the point of view Indo-Bangladesh trade promotion," said Mamta Verma, industries commissioner, Gujarat government.
Globally, Bangladesh is among the top garment manufacturing and exporting countries.
However, it has to bank on India, especially Gujarat, for cotton and yarn.
"Gujarat has aggressive textile policy with incentives for spinning activities. Availability of power and raw material (cotton) is attracting many companies to set up their spinning units in the state," said Dr PR Roy, chairman, Diagonal Consulting India.Bangladesh imports close to 55 lakh bales (one bale weighs 170 kg) annually, of which 70 per cent is accounted by India, while Gujarat has the largest share in cotton exported to Bangladesh.
BBN/SK/AD