Indian exporters believe that in the current situation, garment manufacturing orders can move from Bangladesh to India in a short time. However, the exporters have also made it clear that amid the deteriorating situation, they have no intention or desire to take advantage of the unfortunate situation created in their friendly neighboring country. According to the news of Bhasha, Bangladesh is one of the major countries manufacturing apparel. It imports cotton from India on a large scale to make garments.
A matter of great concern for all exporters
According to the news, due to the students’ movement going out of control, Prime Minister Sheikh Hasina was forced to resign from her post on Monday and leave the country. More than 400 people have been killed in the protests. Mithileshwar Thakur, general secretary of the Apparel Export Promotion Council (AEPC), said the current situation in Bangladesh is a matter of great concern for all exporters. He said that we want the situation to stabilize soon and normal business to resume. Thakur said that there is no intention to take advantage of this situation.
Payments will be affected
The Indian garment industry is making serious efforts to increase the export of readymade garments on the basis of its capabilities. However, it is quite likely that in the short term garment orders may shift to India and the Indian garment industry may be asked to fill the gap created due to this serious hindrance. Ludhiana-based exporter SC Ralhan said that the political crisis in the neighboring country will affect timely payments. He said that normalization of the situation will help in smooth movement of goods.
Trade between India and Bangladesh
Ralhan said that Indian companies operating manufacturing units in Bangladesh will also have to bear the brunt of this. Apart from this, there will also be pressure to make timely payments. India’s exports to Bangladesh declined to $11 billion in 2023-24 from $12.21 billion in 2022-23. Imports also declined to $1.84 billion in the last fiscal from $2 billion in 2022-23. India mainly exports vegetables, coffee, tea, spices, sugar, confectionery, refined petroleum oil, chemicals, cotton, iron and steel and vehicles to Bangladesh while importing fish, plastic, leather and apparel.
