Indian exporters believe that in the current situation, orders for garment manufacturing may shift from Bangladesh to India in a short time. However, exporters have also made it clear that amid the deteriorating conditions, they have no intention or desire to take advantage of the unfortunate situation created in their friendly neighboring country. According to Bhasha’s news, Bangladesh is one of the major countries manufacturing apparel. It imports cotton on a large scale from India to make garments.
A matter of great concern for all exporters
According to reports, Prime Minister Sheikh Hasina was forced to resign from her post and leave the country on Monday as the student movement went out of control. More than 400 people have been killed in the protests. Mithileshwar Thakur, general secretary of the Apparel Export Promotion Council (AEPC), said that 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 its own merit. 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 by this serious bottleneck. Ludhiana-based exporter S C Ralhan said that the political crisis in the neighbouring country will affect timely payments. He said that normalization of the situation will help in smooth movement of goods.
India-Bangladesh trade
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 payments on time. India’s exports to Bangladesh will decline to $11 billion in 2023-24 from $12.21 billion in 2022-23. Imports also declined to $1.84 billion in the last financial year 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.
Latest Business News
