The halt in new orders by western clothing and footwear companies to the violence-hit Bangladesh has significant implications for the Indian textile industry, which supplies raw materials and other inputs to Bangladesh.
According to industry insiders, while India continues to receive more inquiries for clothing, its cotton shipments to Bangladesh are on a decline. M. Rafeeque Ahmed, Chairman, Chennai-based Farida Group, confirms, there are no new orders from Western companies. The workers and the administration are working overtime to complete pending orders. Some items are being sourced from India to fulfill the orders, along with technicians also being hired from India.
Much of Bangladesh's production is concentrated in Chittagong and Dhaka, areas that are relatively distant from the protest sites, highlights Ahmed.Though there were some disruptions in August, western orders are expected to resume soon, he adds citing Bangladesh’s favorable duty climate as a least developed country (LDC).
ChandrimaChatterjee, Secretary General, Confederation of Indian Textile Industry (CITI), notes,Western companies consider India as an alternative sourcing destination. However, its capacity to deliver currently faces qualitative and quantitative mismatches between Indian and Bangladeshi product offerings,she adds.
Although there are inquiries for clothing from India, the reduction in raw material exports to Bangladesh has impacted the Indian textile industry negatively, Chatterjee points out. However, initiatives like the PM Mitra and PLI schemes will continue to strengthen India's textile sector, she affirms.
