Indian Garment Industry Likely To Benefit From Bangladesh's Political Turmoil

New Delhi, Aug 7 (KNN) The ongoing political unrest in Bangladesh has brought its vital garment industry to a standstill, potentially redirecting global textile orders to India.

Industry experts suggest that India's apparel sector may temporarily fill the gap left by Bangladesh in the global market.

Mithileshwar Thakur, Secretary General of the Apparel Export Promotion Council (AEPC), stated, "India has no intention to exploit this unfortunate situation. However, it's likely that in the short-term, garment orders may shift to India."

Bangladesh's ready-made garments sector plays a crucial role in the country's economy, accounting for over 85 per cent of its merchandise exports.

This underscores the potential impact of the current disruption on global supply chains and the opportunity it presents for other manufacturing hubs like India.

In the global clothing trade, Bangladesh currently holds a significant 7.9 per cent share, compared to India's 3.2 per cent. This disparity highlights the substantial market gap that Indian manufacturers might be called upon to fill, at least temporarily, as the situation in Bangladesh unfolds.

The scale of the disruption becomes clear when considering that Bangladesh's clothing industry, valued at USD 45 billion, employs over 4 million workers. The current standstill not only affects Bangladesh's economy but also creates ripples across the global textile supply chain.

However, Indian manufacturers may face challenges in fulfilling additional orders due to stressed domestic supply chains. The Indian textile industry is already operating at high capacity to meet domestic demand, which could limit its ability to quickly absorb a significant influx of international orders.

Interestingly, industry insiders suggest that Vietnam could potentially benefit more than India from this shift. Vietnam's established position in the global textile market and its ability to rapidly scale production might make it a more attractive alternative for international buyers seeking to redirect their orders.

The Confederation of Indian Textile Industry (CITI) warns that global brands relying on Bangladesh may face delays and decreased product availability, affecting the global retail market.

This situation could lead to inventory shortages and sales disruptions for major international clothing brands.

While this situation presents an opportunity for Indian exporters, it also raises concerns for companies with operations in Bangladesh. The long-term impact remains uncertain, as Bangladesh's economic growth continues to moderate amidst high inflation and limited access to foreign exchange.

(KNN Bureau)