Bangladesh-India Textile Industry: Today is National Handloom Day and it is a coincidence for India’s textile industry that the crisis in the neighboring country Bangladesh is creating new business opportunities for the textile industry. A total of 4.5 crore people are employed in the textile industry in India, out of which 35.22 lakh are handloom workers. The current situation in Bangladesh seems to be deepening the crisis on the textile industry there and it is believed that in such a situation international textile buyers or companies may turn to markets like India. The country’s textile industry can benefit from the emergency situation in the neighboring country because business does not stop. The rule of demand and supply continues and only those who fulfill it will be able to strengthen their position in the global market.
How India’s textile industry benefits from the turmoil in Bangladesh
The strongest thread of trade between India and Bangladesh passes through the textile industry. After China, Bangladesh is the second largest textile exporter in the world in the textile market. India is in third place and looking at the current situation of Bangladesh, it is clearly believed that India is going to benefit from it. Now when there is turmoil in Bangladesh, there are definitely opportunities and immense possibilities for India. In April 2024, India’s Manufacturing of Textile Index was at 105.9. No matter how cordial the relations between India and Bangladesh are, but it is also true that due to the cheap labor available in Bangladesh, a large part of the textile business prefers to get manufacturing done from there. Indian companies also get their manufacturing done in Bangladesh in large numbers and export. That is, the current situation of Bangladesh is becoming an opportunity for double benefit for India.
Bangladesh: A small country but has a strong presence in textile exports
Bangladesh’s apparel exports are worth $3.5-3.8 billion every month. It has a market share of more than 10 percent in the European Union and the United Kingdom (UK). Bangladeshi exports hold a 10 percent market share in the US. After this, if we talk about India, apparel worth about $1.3-1.5 billion is exported every month.
India’s textile market will reach $350 billion by 2030
By the year 2030, the size of India’s textile and apparel market is expected to be $350 billion. It is estimated to grow at an annual CAGR of 10 percent. India is the third largest exporter of textile and apparel in the world. India is counted in the top 5 rankings in many textile categories in the world and its export is estimated to reach $100 billion. The textile and textile industry contributes 2.3 percent to the country’s GDP, 13 percent to industrial production and 12 percent to exports. By 2030, the contribution of the textile industry in India to GDP is expected to double to about 5 percent. Currently it is at a total of 2.3 percent.
The path to rapid growth of India’s textile industry is open
India is the largest cotton producer in the world. The Ministry of Agriculture had estimated cotton production to be 31.6 million bales for the financial year 2023-24. According to the Cotton Association of India (CAI), due to increasing demand, cotton production in India is estimated to reach 7.2 million tonnes (~43 million bales of 170 kg each) by 2030. It is also expected to cross US$30 billion by 2027 with an estimated 4.6-4.9 per cent share globally.
Bangladesh’s grief gives a boost to Indian textile stocks
Rupa & Company’s share rose 2.37 percent, Bombay Dyeing’s share rose 2.19 percent, Page Industries, which sells innerwear under the Jockey brand, closed the trade today with a jump of 0.60 percent. In yesterday’s trade, Dollar Industries jumped more than 8 percent.
Know what the Indian government has to say
Union Commerce Minister Piyush Goyal termed the current situation in Bangladesh as worrying and said that he hopes that the neighbouring country will recover from this crisis soon. He did not specifically mention the textile industry but indicated that the business with the neighbouring country will be affected.
What is the latest political update of Bangladesh
According to the latest update, amid the violence in Bangladesh, Mohammad Yunus will take over the command of the interim government tomorrow i.e. on Thursday. Mohammad Yunus is a Nobel Prize winner and economist. Bangladesh PM Sheikh Hasina submitted her resignation on August 5 after months of political instability and left the country and is currently taking refuge in India but there are reports that she may soon go to some other country from here.
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