Political unrest in Bangladesh could lead to short-term shifts in garment orders to India, as exporters seek stable production. Indian businesses are prepared to fill the gap but emphasize no intention to exploit the situation.
Photograph: Mohammad Ponir Hossain/Reuters
New Delhi, Aug 6 (PTI) Indian exporters on Tuesday said that the political situation in Bangladesh may lead to short-term shifting of garment orders to India.
However, they added that India has no intention or inclination to exploit this unfortunate situation in its friendly neighbouring country.
On Monday, former Bangladesh Prime Minister Sheikh Hasina resigned and fled the country amid massive public anger over her government's controversial quota system reserving 30 per cent of jobs for families of veterans who fought the 1971 liberation war. More than 400 people have been killed in the protests.
Mithileshwar Thakur, Secretary General of the Apparel Export Promotion Council (AEPC) said that the current situation in Bangladesh is a matter of great concern for all the exporters.
"We wish that the situation stabilizes quickly and normal business resumes," he said.
Thakur added that India has no intention or inclination to exploit this unfortunate situation in its friendly neighbouring country.
"The Indian garment industry is making serious efforts to grow RMG exports on its own, based on its merit. However, it is quite likely that in the short-term garment orders may shift to India and the Indian apparel industry may be asked to fill the gap caused by this severe disruption," he said.
Ludhiana-based exporter S C Ralhan said that the political crisis in the neighbouring country will impact timely payments.
He said that normalisation of the situation would help in the smooth movement of goods.
Ralhan said that Indian firms having units in Bangladesh would face the impact. "There would be stress on timely payments," Ralhan said.
Bangladesh is a key player in garments in the world and it imports cotton from India.
India's exports to Bangladesh dipped to USD 11 billion in 2023-24 from USD 12.21 billion in 2022-23. Imports too declined to USD 1.84 billion in the last fiscal, from USD 2 billion in 2022-23.
India's main exports include vegetables, coffee, tea, spices, sugar, confectionery, refined petroleum oil, chemicals, cotton, iron and steel, and vehicles. The main import items are fish, plastic, leather, and apparel, among others.
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