According to data from the Union Ministry of Commerce and Industry, the export of cotton yarn from India to Bangladesh was valued at Rs 16,173 crore for the fiscal year 2023-24.
The recent upheaval in Bangladesh, marked by the job-quota crisis in Dhaka and the subsequent resignation and fleeing of former Prime Minister Sheikh Hasina, has led to significant disruptions. This unrest has adversely impacted the textile industry in India, particularly in Punjab.
Garment factories that supply apparel to India have been closed since the onset of the crisis in Bangladesh. Bangladesh, a major market for ready-made garments, relies on imports of cotton yarn from India. However, due to the crisis, trucks carrying yarn and other goods are either stuck at the Bangladesh border or are being sent back, as only essential items such as wheat and rice are being allowed entry. This situation has also halted the supply of ready-made garments from Bangladesh to India, further straining the textile business in India, especially in Punjab.
The textile industry in Punjab operates primarily in Ludhiana, Malerkotla, Amritsar, Bathinda, and Mohali. Other regions in India affected by the crisis include Tiruppur and Coimbatore in Tamil Nadu, Ahmedabad in Gujarat, Gurugram in Haryana, and West Bengal.
Approximately Rs 10 billion of the total yarn exports are from Punjab, with Ludhiana being a key textile hub.
It is also important to mention that under the South Asia Free Trade Agreement, garments and other products from Bangladesh enjoy duty-free access to India and other countries. Many large Indian corporate houses have operations in Bangladesh and use it as a transit point for exporting products to other countries to benefit from reduced export duties.
News Source: The Indian Express