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Bangladesh violence to open up opportunities for Indian textile sector: Amid the ongoing political crisis and violence in Bangladesh, the riots are not stopping even after Sheikh Hasina resigned from the post of Prime Minister. The command of the country is in the hands of the army. Mohammad Yunus, who formed the interim government, has been made the Prime Minister. Amidst the ongoing tension in Bangladesh, local business as well as seven international businesses have been closed for the last few months.
Bangladesh is the top textile exporter worldwide. Bangladesh exports $3.5 billion to $3.8 billion worth of garments every month. The Indian textile sector is expected to benefit from the political crisis in Bangladesh. Because, foreign markets may turn towards India.
India to receive unfulfilled garment orders
After the turbulent situation in Bangladesh, international buyers are looking for other options. In their eyes, India is a strong contender. Experts estimate that if even 10 to 11 percent of Bangladesh's exports come to India, India can get a business of Rs. 30-40 million dollars.
Orders may increase from these countries
Bangladesh gets the highest number of orders from major markets like the EU, UK and the US. However, despite the changed scenario, exporters are also estimating 10 per cent more orders in 2024-25 compared to the previous year. India's monthly textile exports are around $1.3 to $1.5 billion. Even if India gets more than 10 per cent of the orders, India has the capacity to fulfill them easily.
India will get additional orders worth 400 million dollars!
According to experts, India can immediately handle additional orders worth $300-400 million. If the violence in Bangladesh continues for a long time, India and some other countries may benefit from other foreign markets. Bangladesh's textile sector may suffer huge losses this year due to the fear of losing orders. Last year, Bangladesh exported textiles worth about $47 billion. This year it was expected to exceed $50 billion. But the violence there has caused huge losses to the textile industry.
Indian textile manufacturers will return!
Due to the continuous work stoppage, Bangladesh's textile sector is no longer in a position to fulfill export orders. However, many Indian companies also have manufacturing units in Bangladesh. Which accounts for about 25 percent of the industry there. Due to the tense situation in Bangladesh, these companies may bring their operations to India as the delay in movement of goods is affecting the supply chain for the Christmas season. This will give strategic advantage to India and boost the country's textile exports.