Indian-owned manufacturing units in Bangladesh are also expected to relocate to India.
As the crisis in Bangladesh deepens, the textile sector, which accounts for a significant portion of its exports, is expected to be adversely affected, with international buyers likely shifting their focus to alternative markets such as India. Industry experts predict that if 10-11 per cent of Bangladesh’s exports are redirected to Indian hubs like Tiruppur, India could see an additional $300 to $400 million in business per month.
KM Subramanian, President of the Tiruppur Exporters’ Association, indicated that orders might start coming to Tiruppur and that this financial year’s orders are anticipated to be at least 10 per cent higher than those of the previous year. Bangladesh’s monthly apparel exports amount to $3.5 to $3.8 billion, with a substantial double-digit share in the European Union and the United Kingdom, and a 10 per cent market share in the United States. This crisis comes as Bangladesh was projected to surpass $50 billion in annual exports in 2024, compared to approximately $47 billion in 2023.
Furthermore, Indian-owned manufacturing units in Bangladesh are also expected to relocate to India. Trade-policy analyst S Chandrasekaran noted that about 25 percent of these units are Indian-owned, including companies such as Shahi Exports, House of Pearl Fashions, Jay Jay Mills, TCNS, Gokaldas Images, and Ambattur Clothing.
News source: Business Standard