Bangladesh: Indian suppliers gain fresh custom as brands diverted orders after July protests
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"Indian exporters eye gains as global garment brands shun Bangladesh", 6 September, 2024
...The political unrest in Bangladesh is turning into a financial bonanza for Indian textiles and garment industry. Billions of dollars in fresh orders from marquee buyers in the west are shifting to Indian textile companies...
...However, the political upheaval in the country last month which saw deposed PM Sheikh Hasina flee to India, has global buyers nervous...
...After years of docking in Bangladeshi hubs like Chittagong, these buyers have thrown anchor in India's garment markets, seeking fresh opportunities. Reports say that garment export hubs like Tiruppur in Tamil Nadu, Ludhiana in Punjab, Surat in Gujarat, Jaipur in Rajasthan and Noida in Uttar Pradesh have seen deals flow in worth hundreds of crores of rupees in the past few weeks. Companies from Germany, Netherlands, Poland and Spain are testing the waters in India and Vietnam, trying to hedge their bets...
“Bangladesh does not have a fabric supply. India has got a great opportunity to take advantage of this because we have the fabric base here. They only have a garmenting base," Gautam Singhania, Director, Raymond Group
...The fresh developments have also renewed calls for an expedited free trade agreement with the EU. Bangladesh already has a deal in place and a trade deal at this politically sensitive juncture could boost the fortunes of Indian exporters...
...Global buyers from Bangladesh are facing other hurdles as well. Flooding in several areas has forced garment production to fall by as much as 50 per cent. India has also restricted diesel supplies to Bangladesh following the unrest, adding to power shortages in the country and severely hitting factory operations...