Amidst the ongoing political crisis and violence in Bangladesh, Prime Minister Sheikh Hasina has resigned and left the country. The military has taken control and efforts to establish an interim government are underway. The turmoil has been ongoing for the past few months, severely impacting both domestic and international trade.
Bangladesh is globally recognized as a leading textile exporter, shipping clothing worth between $3.5 to $3.8 billion each month. With the political crisis, there is speculation that a significant portion of these exports could shift to India, benefiting the Indian textile sector.
India to Receive Incomplete Garment Orders!
The unstable situation in Bangladesh is prompting international buyers to seek alternatives, and India stands out as a strong contender. Experts predict that if even 10-11% of Bangladesh's exports shift to India, it could mean an additional $300-$400 million in monthly business for India.
Bangladesh receives most of its orders from key markets such as the European Union, the United Kingdom, and the United States. Exporters forecast a 10% increase in orders for 2024-25 compared to last year. India currently exports approximately $1.3 to $1.5 billion worth of textiles each month and is fully capable of handling a 10% surge in orders.
India to Gain Additional $400 Million in Orders!
According to experts, India can quickly accommodate an additional $300-$400 million in orders. If the situation in Bangladesh remains unresolved for an extended period, buyers are likely to turn to other markets, including India, benefiting these economies. The Bangladeshi textile sector, which exported around $47 billion last year and was expected to exceed $50 billion this year, faces considerable losses due to the ongoing violence.
Indian Textile Manufacturers to Return!
Continuous disruptions have rendered the Bangladeshi textile sector unable to fulfill export orders. Several Indian companies have also set up manufacturing units in Bangladesh, representing about 25% of the country's industry. Given the tense environment, these companies may relocate their operations to India, which would strategically benefit Indian textile exports, especially with the Christmas season supply chain at risk of delay.
