India is exploring investment and sourcing opportunities in Bangladesh’s textile and clothing sector. One area India is interested in investing in is the stitching and spinning sub-sectors of Bangladesh. Bangladesh is looking for investment in the backward and forward linkage industries, where it is lagging behind. It wants Indian businesses to set up industries and manufacture high-end and diversified products like suits, lingerie, design and manmade fabrics. The country would also welcome a fashion designing center.

Bangladesh has a strong capacity in producing cotton fabric. It wants foreign investors to set up non-cotton fabric-making units like polyester, filament, design fabric or other manmade fabrics as there is a huge opportunity to invest in these areas.

There is a special need for investment in the weaving sector as weavers in Bangladesh cannot meet the demand for fabrics due to inadequate production capacity. While spinners are able to supply 90 per cent of the yarn needed for the knit sector, weavers can meet only 40 per cent of the demand for fabrics in the woven sector.

Bangladesh has a plan of making garment products using Indian fabrics and then exporting the finished products to the world. Bangladesh exported apparel products worth 104.25 million dollars to India in 2014-15 fiscal year.