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 inquiries 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 neighboring country.

"This crisis also presents an opportunity for additional employment generation. Capturing just 10 per cent of Bangladesh's global apparel exports could directly create 500,000 jobs and indirectly generate an additional 1 million jobs in the Indian apparel sector. To seize the opportunity presented by this development, India needs to urgently address issues related to capacity augmentation and skill development," Thakur said.