Political Unrest in Bangladesh Resulting in Ripple Effect for Indian Textiles

Bangladesh, which is facing its worst political crisis since its Independence in 1971, poses "significant concerns" for India's textile and apparel sector, particularly for companies operating factories in the neighboring country, the Confederation of Indian Textile Industry said on Tuesday. The domestic textile industry body believes that any supply disruption in Bangladesh will have an immediate impact on the supply chain, potentially affecting the production schedules and delivery timelines of Indian firms.

"The situation in Bangladesh is indeed concerning, and we are closely monitoring the developments. Bangladesh's growth in the textile sector has been inspiring and has lent strength to the trade flows in the entire subcontinent.

"While we are concerned about the impact on the supply chain and the potential delays and disruptions it might cause, we are hopeful that the situation will improve soon," Chandrima Chatterjee, Secretary General, Confederation of Indian Textile Industry (CITI) said.

According to CITI, Indian companies with manufacturing operations in the country will likely face challenges in maintaining their production flow, leading to delays and potential shortages in the market. This disruption could affect the availability of products and might force companies to seek alternative manufacturing solutions to mitigate the impact.

"Amid the uncertainties in Bangladesh, there is already a noticeable shift towards alternative manufacturing hubs, such as a strategic move by companies to diversify their production bases and reduce dependency on a single market," CITI stated.

It observed that Indian textile hub Tirupur, known for its robust textile and apparel manufacturing capabilities, may emerge as a key beneficiary of this shift.