Neighbouring Bangladesh has been going through unprecedented crises for the past few days. The movement that began with student protests has led to a coup in the country. Due to this, Bangladesh is not only facing political upheaval, but a period of social instability is also visible, due to which a huge economic loss may be suffered eventually. India may also suffer many losses due to this chaotic situation in the neighbouring country, but according to rating agency CareAge, some opportunities are also being created for India in this disaster of Bangladesh.
Opportunities from export to employment generation
An ANI report quoted rating agency CareAge as saying – The ongoing instability in Bangladesh can create new opportunities for the Indian garment industry. India’s garment makers can take advantage of this opportunity and expand their presence in the global market. This can also lead to increased exports for India and creation of large-scale employment at the local level.
Bangladesh’s share in the global garment market
In fact, Bangladesh is currently a major player in the global market of garment industry. In terms of export of readymade garments, Bangladesh is now behind only China. China’s current share is around 30 percent, while Bangladesh occupies around 8.5 percent of the global market. In the last few years, Bangladesh has made tremendous progress in the entire garment industry including readymade garments. This has improved Bangladesh’s exports, created employment opportunities for millions of people locally and improved the economic condition of the neighboring country.
India can become an alternative for global companies
Bangladesh has been getting the benefit of skilled workforce and low labor cost. Due to this, many renowned global companies and famous brands of textile and apparel sector have made their manufacturing base in Bangladesh. Now that the country is surrounded by uncertainty, all the global companies have started looking for alternatives. In such a situation, India can become a better option for them and Indian garment makers can take advantage of this opportunity and increase their share in the global market.
Export opportunities up to $350 million per month
According to CareAge’s report, although China is currently the number one garment exporter, its share in the global market has declined rapidly in the last few years. When global companies started looking for an alternative to China, countries like Bangladesh and Vietnam benefited greatly from it. Now the instability in Bangladesh is creating opportunities for India. According to CareAge, the Bangladesh crisis is creating monthly export opportunities of $200 to $250 million for Indian garment makers in the near future, while in the medium term, export opportunities of $300 to $350 million per month can be created.
Also read: Indian auto companies will have to bear the brunt of the turmoil in Bangladesh, exports will be adversely affected
