Bangladesh crisis became a boon for Indian textile companies

Bangladesh Crisis: Political crisis in Bangladesh is proving to be a boon for Indian textile companies. Bangladesh used to have a very strong hold in the global textile supply chain. But Bangladesh is now facing logistics complications along with political turmoil. In such a situation, the golden days of Indian textile companies have started returning. There has been a sharp increase in India’s share in exports to America and UK.

India’s share in exports to America-UK increased

Brokerage house JM Financial has released a report regarding India’s textile sector. In this report, the company said that Indian textile companies feel that there may be a surge in demand in the second quarter of the current financial year. India’s market share in textile exports to America (United States) and United Kingdom has increased significantly in 2024 as compared to 2023. India’s share in exports to America was 6 percent in the year 2023, which has increased to 7 percent in 2024. India’s share in textile exports to UK was 5 percent in 2023, which has increased to 6 percent in 2024.

Bangladesh crisis became a boon

JM Financial said in its report that a major change is being seen in the global textile sector and due to the ongoing turmoil in Bangladesh, India has emerged as a strategic option for international retailers. According to the report, due to challenges in the textile hub of the emerging market, a great opportunity has come for Indian textile exporting companies.

Good days return for Indian textile companies

According to the report, Bangladesh, which has historically been a leading country in textile exports, is witnessing huge internal tensions. Also, high factor cost in Vietnam will prove beneficial for the companies exporting garments from India. China’s share in textile exports is decreasing worldwide, which is benefiting India. The rise in labor costs and the China+1 policy seem to be working. Companies like Gokaldas Exports and Indocount say that they will benefit from the improvement in market conditions in the second half of 2024.

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