The Indian textile and clothing industry is anticipated to be impacted in the short term by the situation in Bangladesh.
The Cotton Textiles Export Promotion Council’s executive director, Siddhartha Rajagopal, stated that 17 per cent of India’s total cotton textile exports, or US $ 1.7 billion, were shipped to Bangladesh in the most recent fiscal year in the form of cotton, cotton yarn, and textiles.
Around US $ 1 billion worth of cotton clothing was exported by Bangladesh in FY ’23. Trucks carrying clothing and textiles were said to have become stuck on either side of the border.
“Normalcy should return to see how the business will evolve. There are nearly 30 Indian textile companies that have facilities in Bangladesh,” said Rajagopal.
Global brands would observe and potentially explore alternative sources of supply. He advised India to set itself up to take advantage of the chance.
According to Indian Texpreneurs Federation convenor Prabhu Dhamodharan, Bangladesh exports US $ 3.8 billion worth of clothing per month, compared to India’s US $ 1.3 billion. Reopening of the plants in Bangladesh is reportedly scheduled for next week. Bangladesh is one of the biggest consumers of Indian yarn and fabrics, so while Indian apparel companies might benefit temporarily, things should eventually return to normal in that country.
