Amid the ongoing political turmoil in Bangladesh, its economic impact is being felt in India as well. Especially the garment and knitted sectors are facing uncertainty due to the Bangladesh crisis. Finance Minister Nirmala Sitharaman acknowledged this on Saturday.
Finance Minister Nirmala Sitharaman was addressing a press conference after the meeting of the Central Board of Directors of the Reserve Bank today on August 10. She said that the garment and knitted sector in India is being affected due to the ongoing instability in the neighboring country. According to her, both these sectors in India have come under uncertainty to some extent due to the current crisis.
It is too early to say about the wider impact
However, he did not say anything about the impact in detail. According to the Finance Minister, it is too early to say anything about the wider impact. We have a liberal attitude towards duty and quota for low-income countries. In such a situation, they are able to export more to us and we import first. In such a situation, there has been some impact on the garment and knitted sector.
Investments of textile companies in Bangladesh
Regarding the investments made by Indian companies in Bangladesh, the Finance Minister said- We hope that the investments are safe. Apart from that, it would be too early to say what economic impact the situation in Bangladesh can have on India. Right now, I and many others have discussed the matter of investment of our textile industry in Bangladesh. Many textile companies of Tamil Nadu have invested in Bangladesh.
CareAge thinks India will benefit
Earlier, rating agency CareAge had said in a report that the ongoing instability in Bangladesh could create new opportunities for the Indian garment industry. According to the agency, Indian garment makers can take advantage of the uncertainty in Bangladesh and increase their share in the global market. According to CareAge, the Bangladesh crisis could create export opportunities for Indian garment makers worth $200-250 million in the near future and $300-350 million per month in the medium term.
The impact of the crisis on Bangladesh’s economy
Let us tell you that after the coup of the Sheikh Hasina-led government in neighboring Bangladesh, a caretaker government has been formed under the leadership of Nobel Laureate economist Mohammad Yunus. However, there is still an atmosphere of instability in Bangladesh and the situation has not become normal. This is likely to have a serious impact on the industry there, especially the textile sector, which contributes 80 percent to Bangladesh’s total exports and 15 percent to the GDP.
Also read: Bangladesh disaster is an opportunity for India! CareAge believes this industry will benefit
