The Confederation of Indian Textile Industry (CITI) has stated that Bangladesh, which is currently experiencing its greatest political crisis since gaining independence in 1971, presents “significant concerns” for the textile and apparel industry in India, especially for businesses that have operations in the neighbouring nation. According to the national organisation for the textile industry, any interruption in the supply chain in Bangladesh will immediately influence the supply chain and may have an effect on the delivery and production schedules of Indian companies.
“While we are concerned about the impact on the supply chain and the potential delays and disruptions it might cause, we are hopeful that the situation will improve soon,” Chandrima Chatterjee, Secretary General, Confederation of Indian Textile Industry (CITI) said.
As per CITI, Indian enterprises engaged in manufacturing within the nation may encounter difficulties in sustaining their production flow, hence resulting in market delays and possible scarcities. The supply of products may be impacted by this disruption, and businesses may be forced to look for alternate manufacturing options in order to lessen the effects.
“Amid the uncertainties in Bangladesh, there is already a noticeable shift towards alternative manufacturing hubs such as a strategic move by companies to diversify their production bases and reduce dependency on a single market,” CITI stated.
It observed that Indian textile hub Tirupur, known for its robust textile and apparel manufacturing capabilities, may emerge as a key beneficiary of this shift.
“Several major global brands that rely on Bangladesh for their sourcing needs will also be affected by these disruptions. Brands with significant portions of their supply chain rooted in Bangladesh may experience delays and a decrease in the availability of their products. This, in turn, could lead to a ripple effect across the global retail market, affecting inventory levels and sales,” CITI said.
Bangladesh is a crucial market for Indian textiles, serving as both a manufacturing hub and a significant export destination.
