Textile exports will benefit

New Delhi: India is likely to benefit from the political crisis in Bangladesh in terms of trade, especially in readymade garments. The textile sector is a major contributor to Bangladesh's exports. Given the crisis in Bangladesh, international buyers of readymade garments will start turning to alternative markets like India, said an official of the Tirupur Exporters Association.

Tirupur is a major hub for the manufacture and export of readymade garments in India. Due to the unrest in Bangladesh, India is expected to get additional business worth 35 to 40 million dollars per month. Which is about 10 to 12 percent of Bangladesh's garment trade.

The official expressed hope that India is expected to get orders for the upcoming Christmas and New Year.

Bangladesh's garment exports are worth 3.60 to 3.80 billion dollars per month. Bangladesh's garments are mainly exported to the US, UK and European countries. Its market share in the EU and UK is in double digits, while its market share in the US market is 10 percent.

Bangladeshi garments are available at competitive prices in the world market due to cheap labour costs.

Meanwhile, according to a S&P report, although Bangladesh is India's major trading partner in South Asia, the current unrest is unlikely to impact India's trade.

India's export figure to Bangladesh was $11 billion in the last financial year, which was seen at $12.21 billion in the financial year 2022-23. Imports also declined from two billion dollars to $1.84 billion.

India's exports to Bangladesh mainly include products including tea, coffee, vegetables, cotton, iron, steel. Imports mainly include leather and plastic.

Trade between India and Bangladesh