B’desh crisis an opportunity for domestic textile sector

Ludhiana: The ongoing political crisis and unrest in Bangladesh have sparked concerns in the global textile industry, but this new situation has opened a significant ‘growth opportunity’ for the domestic textile sector.Industry insiders believe that the disruption in supply chains, delays in delivery schedules, and overall production difficulties in Bangladesh could prompt international buyers to seek alternative markets, offering a potential opportunity for domestic manufacturers.Even the domestic sector, especially Ludhiana-based manufacturers, have already started receiving queries about potential export. However, they stated that it will be temporary growth, and their buyers will return to Bangladesh once the situation there normalises.Bangladesh, currently the second-largest exporter of textiles after China, has long been a crucial player in the global textile industry. Many large companies, including some from the domestic textile sector, have established manufacturing units in Bangladesh due to its competitive labour costs and robust production capacity. However, the recent political instability has cast a shadow over its ability to maintain these advantages, said stakeholders of the domestic textile sector.However, industry experts caution that the potential benefits for the domestic textile sector hinge on the duration of the crisis in Bangladesh. If the political situation stabilises quickly, many buyers and manufacturers may choose to continue their relationships with Bangladeshi suppliers rather than incur the costs and risks associated with shifting production to new locations.Badish Jindal, president of the All Industries and Trade Forums, said: “The new situation in Bangladesh has raised concerns among buyers, manufacturers, and investors, and they will look for alternatives now. Thus, it is a big opportunity for the domestic textile sector.” “However, they will be benefited only if the crisis continues for long as buyers and manufacturers will not opt for alternatives for disruption of a few days.”He said the timing of the unrest is particularly critical, as it coincides with the lead-up to the Christmas shopping season, one of the most important periods for the textile and apparel industries. Typically, orders for this season are placed well in advance, with deliveries scheduled for September and October. Any significant disruption in production and shipping from Bangladesh during this crucial period could force buyers to seek other suppliers to avoid potential losses.Jindal said this urgency might drive buyers to explore the domestic market as a viable alternative. “The companies will look for alternatives to avoid the losses in this season,” he said. “Besides, the fresh investment in Bangladesh will be on hold due to the new emerging political situation and India can also benefit from this investment.”Vinod Thapar, president of the Knitwear Club, said: “We are already receiving queries for export. But it will be a temporary gain as once the situation normalises the buyers will return to their original manufacturers and traders.”
Stay updated with the latest news on Times of India. Don't miss daily games like Crossword, Sudoku, and Mini Crossword.