Political instability and violence have serious effects on textile industry in Bangladesh
Many big brands may shift to India
Dhaka (Bangladesh) – After Sheikh Hasina’s sudden exit from the country, Bangladesh is moving towards economic downfall as in Pakistan due to instability in the country. Textile industry, which is the foundation of the economy of Bangladesh, is most adversely affected. Industries are seriously concerned about the increasing attacks on Hindus since it can lead to likely closure of many companies; and textile industry would have the worst impact. Many companies are now looking up to Indian manufacturers to reduce losses and for timely supplies.
Effect on textile industry
It may be noted that after China, Bangladesh holds second position in the world in textile business. Contribution of the textile industry to the GDP of Bangladesh is 11% till 2024 which is substantial. About 80% revenue is generated through exports in this industry. People may lose jobs if the textile industry faces decline in business, leading to raising huge loans. Such a situation can take Bangladesh to economic problems as in Pakistan.
Gujarat to get benefit
Many international brands, including American brands, manufacture their garments in Bangladesh. These clothes are later sold in big stores in different countries; but the present violence in Bangladesh is affecting the business of such brands. International brands are looking for a new place for manufacturing their products and Surat in India can be an alternative. According to people from the industry, the international brands are making inquiries about production and supply of apparels. If such inquiries turn into orders, there will be a rise in the textile business of Surat from the existing 12% to 20-25%.
Other Indian cities may benefit too
Mr Ashish Gujarati, the former President of the South Gujarat Chamber of Commerce stated that new orders would not only benefit Surat but would also benefit other Indian cities with preference to Tirupur and Coimbatore in Tamil Nadu, Ludhiana in Punjab, and NOIDA in Uttar Pradesh, etc.