Bangladesh crisis offers new opportunities for Indian textile clusters

Amid the ongoing economic and political tensions in Bangladesh, Indian exporting firms, particularly in the Tirupur clusters, are receiving higher enquiries from several global apparel brands, including Primark, Tesco, Decathlon, Duns, JCPenney, GAP, Next, and Walmart, with order conversion expected for shipment by early 2025, Mithileshwar Thakur, Secretary General of the Apparel Export Promotion Council (AEPC) said.

- RAVI DUTTA MISHRA

Due to a record surge in the US dollar's value, Bangladesh has faced a sharp depletion in its foreign exchange reserves, which fell below $40 billion for the first time in two years in July last year. With foreign exchange reserves sufficient to cover only four to five months of imports, Bangladesh has faced challenges in importing cotton and fabric, which it traditionally sources from India. This comes amid tightening economic conditions in the neighbouring country.