Bangladesh Crisis: Amid escalating civil unrest in Bangladesh, the Apparel Export Promotion Council (AEPC) has expressed concerns that buyers will hesitate to place their orders in India unless the Modi government revises its import policies. AEPC Chairman Sudhir Sekhri highlighted the need for easier access to imported man-made fabrics, trims, and accessories. Buyers are reportedly 'very concerned' about the ongoing turmoil in Bangladesh, prompting them to withdraw their orders and seek alternatives, at least in the short term. Sekhri highlighted that most of these orders involve man-made fabrics sourced from China, Korea, and Europe. "Shifting these short-delivery orders using special imported fabrics to India is not viable under current import policies," Sekhri said. "Only orders involving fabrics of Indian origin are likely to be redirected to Indian factories." While the current political situation raises short-term concerns, India’s trade ties are built on a strong foundation. As we read, the government is closely monitoring developments and maintaining open communication channels. Given the depth and diversity of India’s economic partnership, our hope is for a smooth and stable transition of power, which will help ensure that our vital trade relations continue without significant interruption. We wish that a resolution will be reached promptly and that stability is restored, safeguarding the interests of the citizens. The AEPC chairman noted that buyers will continue to be cautious about placing orders in India unless the government eases import restrictions. He warned that long-term dependence on Bangladesh is increasingly viewed as risky due to ongoing instability and previous capacity saturation issues. "The recent turmoil in Bangladesh will accelerate buyers' plans to diversify their sourcing. Indian factories will benefit only if they expand their capacities," Sekhri added. Bangladesh is currently facing its worst political crisis since its independence in 1971. Street protests over job quotas have forced Prime Minister Sheikh Hasina to resign and flee, plunging the nation into uncertainty. "Buyers are very concerned with the escalation of the civil unrest in Bangladesh. In the short term, fast fashion buyers have no option but to pull out their orders from Bangladesh and place them elsewhere," Sekhri reiterated. On the other hand, Subhash Chand Kathuria, managing director of Synergy Steels, said, "Bangladesh stands as India’s foremost South Asian trade partner, a relationship that's crucial for regional economic stability. In 2024, a quarter of India's cotton exports went to Bangladesh. Beyond textiles, India’s met 12 per cent of Bangladesh’s petroleum needs and 65 per cent of their wheat imports in the past fiscal year, alongside being a key supplier of spices, pulses, and rice."
Source: ABP Live
Even as the ongoing turmoil in Bangladesh has left the yarn exporters from Punjab and other parts of the country worried over their stuck consignments and payments, the textile industry is eyeing an opportunity. Exporters believe that due to the crisis, global textile orders could shift partly to India. In a month, India exports around 40,000 tonnes of different type of yarns, including cotton, acrylic and woollen, to Bangladesh. Punjab’s share in the exports is around 35 per cent. Advertisement According to yarn makers, the state has huge stakes in Bangladesh as the net exports generate over Rs 4,000 crore each year. The largest share is of cotton yarn, followed by acrylic wool. As the border with Bangladesh has been shut, the export consignments are stuck. “Goods worth more than Rs 200 crore are stuck at the border and orders worth Rs 1,000 crore will be immediately effected,” said Amit Thapar, president, Ganga Acrowools Ltd, who also heads Northern Region-CII export committee. His own goods (woollen yarns), worth Rs 2 crore were stuck and orders worth Rs 4 crore would be impacted if the situation did not improve, he added. Sanjiv Dutt, vice-president of Punjab-based Winsome Textiles, said the crisis in Bangladesh would have a severe impact on the industry in Punjab, as payments would be halted or delayed. “High-quality cotton had been imported before the crisis. The payment circle will be hit as Bangladesh is a crucial market for Indian textiles,” he added. Bajrang Lal Sharma, member of the management committee of All-India Motor Transport Congress, said: “More than 700 trucks laden with yarn, chemical fabric and cycle parts are stranded on the Indian side of the border, while 1,300 trucks are stuck on the other side. Of these, roughly 200 are were of Punjab-based exporters.” Meanwhile, stakeholders of the garment industry anticipate that due to the crisis, global buyers may shift short-term orders to India, benefitting the garment clusters in Ludhiana, Noida, Tiruppur and Gurugram. They also hope that Indian corporate houses like Reliance, Tata, Madura Coats, Arvind and brands like Marks and Spencer, Canterbury, Polo, etc., who were earlier getting outsourcing done from Bangladesh, can come up with orders for the local industry. Talking to The Tribune, Sudershan Jain of Oner Knitwear said: “India now has a good opportunity to make a comeback. If governments support the garment industry, this could be a golden opportunity for manufacturers to get orders in bulk. Countries like China, Cambodia and Vietnam are also in the race, but India too can catch up,” said Jain. “Some of our members have already received queries from foreign buyers. As India exported a significant amount of yarns and fabric to Bangladesh, if everything goes well you might see a lot of export orders being catered from India in the near future,” said Lalit Thukral, president, Noida Apparel Exporters Cluster. Thukral is also the regional head, northern region, for Apparel Export Promotion Council. As per estimates, there are approximately 10,000 garment/textile units in Ludhiana, half of which are associated with the corporate sector in one way or the other. Currently, of $44 billion earned due to textile exports from India, $14 billion is generated by exports in the apparel segment alone. Bangladesh earns $47 billion in a year from apparel exports.
Source: Tribune India
Unrest in Bangladesh could prove to be an advantage for India’s garments sector and the government would take steps to benefit from this situation, Textiles Minister Shivanand Patil said on Wednesday. Speaking at an event to mark National Handloom Day, Patil said developments in Bangladesh were sure to hamper the garments industry there. This was a good opportunity that the state must make use of, he added. Highlighting the problems faced by weavers in the state, Patil said the falling income levels in the handloom sector had forced many weavers to give up their profession. Also Read: Bengaluru's Bangladeshi nationals speak of hope, discontent, uncertainty back home “The community is shunning the profession completely, despite the state and central governments coming out with welfare schemes for them. The governments are helping weavers to set up their own small textile units to replace handlooms, besides heavily subsidising electricity, giving loans at low interest rates and scholarships for their children’s education,” he said. According to data released by the state handloom corporation, the LIC was yet to release insurance amount to 114 nominees of 123 weavers who died between 2017 and 2020. All 123 weavers were registered under the Pradhan Mantri Jeevan Jyothi Bima Yojana scheme, Pradhan Mantri Suraksha Bima Yojana and Aam Aadmi Bima Yojana group insurance schemes. Ex gratia pending The data released by the government showed that 42 weavers had died by suicide in the state in the last four years (2020-24). A compensation of Rs 5 lakh each were paid to the families of 25 deceased weavers under the chief minister’s relief fund (Covid). The applications for compensation from the kin of seven of the deceased were rejected and families of 10 weavers were yet to receive compensation.
Source: Deccan Herald
Chennai: State industries minister T R B Rajaa on Wednesday lashed out at AIADMK general secretary Edappadi K Palaniswami, saying not even a single rupee came as investment for the textile sector during the previous AIADMK regime. Rajaa was responding to a statement by Palaniswami in which the leader of opposition said investments in the textile sector are moving to other states. Rajaa said Palaniswami “who is concerned about the textile industry, did not bring a single paisa investment to the textile sector during his tenure as a result of his collaboration with BJP”. Rajaa said state govt under CM M K Stalin recently announced several incentives worth more than `500crore, including a 6% interest subsidy for the textile sector. “This is why investments worth ₹20,162.44crore flowed into the textile sector alone since 2021,” Rajaa said. Rajaa said Palaniswami “who is concerned about the textile industry, did not bring a single paisa investment to the textile sector during his tenure as a result of his collaboration with BJP”. Rajaa said state govt under CM M K Stalin recently announced several incentives worth more than `500crore, including a 6% interest subsidy for the textile sector. “This is why investments worth ₹20,162.44crore flowed into the textile sector alone since 2021,” Rajaa said. Palaniswami had said foreign investments had reduced in TN under DMK tenure. Responding to the claims, Rajaa said, “Despite a decline in foreign investments across India in 2023-24, investments in have increased by 12.3%. It has been repeatedly emphasized by various experts, however, that direct foreign investments are not the perfect indicator of growth. The reason is that even though companies bring their investments to one state, it is credited to the state where their headquarters are located.” Responding to Palaniswami's allegations that CM’s visits to foreign countries had not yielded any investment, Rajaa said Stalin's visits to UAE, Singapore, Japan, and Spain alone had resulted in investments worth ₹10,881.9 crore and created 17,371 jobs.
Source: Times of India
Bangladesh is currently experiencing significant political turmoil, which is directly impacting business activities in the country. The textile industry in Bangladesh, one of the largest in the world, exports garments to many countries, including India. However, the deteriorating business environment in Bangladesh is raising concerns. With the ongoing political instability, the operational challenges and disruptions are affecting the textile sector's efficiency and export capabilities. As a result, there is growing speculation that India might capitalize on this situation to enhance its position in the global textile market. India’s textile industry could potentially benefit from Bangladesh's current difficulties by increasing its own production and export volumes, aiming to become a major player in the global textile industry.
Source: Paisa Live
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 in india are employed in the textile industry, out of which 35.22 lakh are handloom workers. The latest 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 can 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. In the textile market, bangladesh is the second largest textile exporter in the world after China. 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, 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: It is a small country but has a lot of dominance in textile exports. Bangladesh's monthly textile (apparel) export is 3.5-3.8 billion dollars. It has a market share of more than 10 percent in the european union and the United Kingdom (UK). Bangladeshi exports hold 10 percent market share in the US. After this, if we talk about india, garments worth about 1.3-1.5 billion dollars are exported every month.
Source: India herald
By 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 $100 billion. The textile and textile industry contribute 2.3 percent to the country's GDP, 13 percent to industrial production and 12 percent to exports. By 2030, the contribution of the textile industry in india to GDP is expected to double to about 5 percent. Currently it is at 2.3 percent. The path to rapid growth of India's textile industry is open India is the world's largest cotton producing country. The Ministry of Agriculture had estimated cotton production to be 31.6 million bales for the financial year 2023-24. According to the Cotton Association of India (CAI), due to increasing demand, cotton production in India is expected to reach 7.2 million tonnes (~ 43 million bales of 170 kg each) by 2030. It is also expected to cross US$ 30 billion by 2027 with an estimated 4.6-4.9 percent share globally. Indian textile stocks get boost from Bangladesh gum Rupa & Company shares up 2.37 percent, Bombay Dyeing shares up 2.19 percent, Page industries, which sells innerwear under the Jockey brand, closed today with a jump of 0.60 percent. In yesterday's trading, Dollar industries jumped more than 8 percent.
What does the Indian government say- know?
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.
Source: India herald
A mini handloom textile park is going to be set up in Chennimalai at a cost of Rs 3 crores by the Tamil Nadu government. 1.5 acres of land has been allocated for this purpose. District Collector Rajagopal Sungara today inaugurated a 2-day handloom exhibition in connection with the 10th National Handloom Day at Erode District Collectorate. After that, Tamilselvan, assistant director, handlooms, said: Rs 75 lakhs welfare benefits were given to 45 weavers in this event. Ten weavers were awarded shields and prizes. 17 weavers receive prizes worth Rs 3 lakh at a function in Chennai. They belong to various handloom societies. Prizes are awarded because of the designs they create.There are 190 handloom societies in Erode district. All but three of them are working fine. At present handloom fabrics worth Rs 250 crores are in Erode district. About 150 lakh school children's uniforms have been manufactured and sent from Erode district. Under the Free Vetti and Sarees Scheme, 65 lakh Vettis or 65 Lakh Sarees will be produced by 52 handloom weavers' societies in the district. The production will start once the orders regarding the supply of yarn are received from the government. This year 40 people were trained in handloom weaving in Erode district.
A recommendation has been made to the Centre to create a mega handlooms cluster in the district. Mudra loan assistance up to Rs 50000 is provided for development of land loom. Similar expos were held in the Velalar College and Government Medical Colleges now. A medical camp has also been organized at Sivagiri for the benefit of weavers, he added.
Source: Afternoon
Chandigarh: Yarn exporters in Punjab are expressing concern over potential financial losses due to the ongoing economic crisis in Bangladesh. With fears mounting that payments for their consignments may be delayed or stuck, exporters are on edge. Despite these concerns, some in the Indian textile industry see the situation as an opportunity to gain more global textile orders as Bangladesh, a major competitor, grapples with its crisis. India exports an average of 40,000 tonnes of yarn to Bangladesh each month, with Punjab contributing approximately 35% of this export volume. Yarn manufacturers in Punjab highlight that over Rs 4,000 crore worth of yarn is exported to Bangladesh annually. However, the recent closure of borders has halted these exports, posing significant financial challenges for exporters. Amit Thapar, President of Ganga Acrowool Limited, stated, “Goods worth over Rs 200-300 crore are stuck at the border, and orders worth over Rs 1,000 crore will be immediately affected.” This situation has left exporters anxious about the future of their business dealings with Bangladesh. On the other hand, some textile manufacturers view the crisis as a chance to expand their market share. With Bangladesh facing difficulties, Indian textile producers anticipate that international buyers may turn to India to fulfill their orders, potentially boosting India’s textile exports. As the situation unfolds, yarn exporters are calling for government intervention to address the immediate impact of halted shipments and explore strategies to mitigate losses. Meanwhile, the broader textile industry is preparing to seize new opportunities in the global market, hoping to turn the crisis into a catalyst for growth.
Source: Punjab News
A textile factory in Kandahar has resumed operations after an 18-year hiatus caused by the war waged by the United States and its allies in Afghanistan. According to the Department of Culture and Information of the Taliban, the factory is currently utilizing about 400 of its 3,000 machines to produce textiles for the Ministries of Health, Defense, and Internal Affairs. The remaining 2,600 machines are intended for commercial use, requiring nearly 14,000 workers to operate at full capacity. The textile factory, which was originally opened under Afghanistan's first president, Mohammad Daoud, includes two workshops capable of processing 7,692 tons of cotton per year and producing 41 mn meters of fabric annually. The facility, built in 1977 by Soviet and German companies, ceased production in 2006 due to the conflict involving the United States. Dozens of other factories in Afghanistan faced similar disruptions during the war, but production has gradually resumed following the Taliban's return to power in 2021. Notably, the state bakery "Silo-e-Markazi" in Kabul resumed production two years ago after a 30-year break. The reopening of the Kandahar textile factory is expected to provide employment opportunities and contribute to the region's economic growth. As the factory ramps up production, it will need nearly 14,000 workers to operate at full capacity, potentially boosting the local economy by generating income for thousands of families. The revival of the Kandahar textile factory is part of a broader trend of industrial rejuvenation in Afghanistan. The Taliban government has focused on restoring the country's industrial sector, aiming to stabilize the economy and improve self-sufficiency.
Source: Daryo.uz
The latest Trade Confidence Outlook for Q2 2024, published by the British Chambers of Commerce (BCC), reveals a troubling trend for UK small and medium-sized enterprise (SME) exporters, with overseas sales showing minimal growth. According to the survey conducted by BCC’s Insights Unit, which included responses from nearly 2,000 UK SME exporters, 52 per cent of respondents reported no change in their overseas sales, while 21 per cent experienced a decline. Only 27 per cent of exporting SMEs reported an increase in overseas sales during Q2 2024, marking a slight improvement of three percentage points since the pandemic, but still highlighting a general stagnation in export growth. The outlook is particularly stark when compared to pre-pandemic and pre-Brexit figures. In Q2 2018, only 14 per cent of SME exporters reported a decrease in overseas sales, whereas that number has risen to 21 per cent in Q2 2024. While domestic demand remains robust, with 37 per cent of SME exporters reporting an increase in domestic sales, the disparity between domestic and overseas sales is evident. Despite the overall sluggishness, there is a glimmer of hope in the manufacturing sector. Among SME manufacturers, 31 per cent reported an increase in exports, outperforming both SME service exporters supplying end customers (B2C) at 25 per cent, and those supplying other businesses (B2B) at 24 per cent. However, the outlook for advance orders is less encouraging across all sectors, with only 28 per cent of SME manufacturers, 23 per cent of B2C firms, and 20 per cent of B2B businesses reporting an increase.
William Bain, head of trade policy at the BCC, said: “Our research shows the government will have its work cut out in trying to revitalise UK exports, as they continue to underperform. But it has already taken some steps to help firms turn a corner. This includes its trade strategy announcement, restarting trade negotiations in vital markets, joining the World Trade Organisation’s e-commerce agreement and committing to improving our relationship with the EU. “Legislation announced in the King’s Speech also has the potential to ease the problems of regulatory divergence for regulated products sold into the EU. Business wants to work with government to put in place a framework that makes use of all the UK’s advantages and makes it easier to access incentives for exports. A focus on critical minerals supply chains and taking full advantage of the opportunities offered by digital trade would also have real value for our firms.”
Source: Fibre2fashion
Advisory Committee, ICAC, to revive the country’s moribund cotton/textile industry. Disclosing this in a statement, the Vice- President’s Media Aide, Mr Stanley Nkwocha, said the government met with the ICAC at the Presidential Villa in Abuja, the nation’s capital, led by its Executive Director, Mr Eric Trachtenberg. Chairing the meeting was the Vice – President Kashim Shettima, where discussions centred on developing key components of the cotton value chain comprising farming, weaving, ginning and linking of cotton, all in line with the industrialization drive of President Bola Tinubu’s administration. Mr Nkwocha stated that the target was to “create over 1.4 million jobs annually in the cotton/textile sector”. The statement read, “Senator Shettima urged stakeholders to come up with a roadmap for the revitalization of the cotton/textile sector in Nigeria, noting that “it is time to work more and talk less”. The Vice-President assured that “the Tinubu administration will make conscious efforts to ensure the country harnesses opportunities in the cotton value chain, including ensuring that Nigeria regains its ICAC membership”. Mr Shettima thanked the delegation for the visit, just as he acknowledged ICAC’s commitment to the development of the sector in Africa. “Your diverse backgrounds in ICAC gives a nuanced understanding of the complexities and opportunities in the cotton value chain”, he noted. In his remarks, Lagos State Governor, Mr Babajide Sanwo-Olu, said his state was well positioned to harness opportunities in the cotton value chain, given that it hosts the factories, and the market and is a critical component of the business ecosystem for the cotton sub-sector. The governor expressed excitement at the possibility and opportunity for the resuscitation of the cotton and textile sector with a particular focus on job creation and economic transformation. Mr Sanwo-Olu pledged the state’s readiness to offtake cotton produced in other parts of the country for companies based within the area.On his part, Governor Hope Uzodimma of Imo State said the meeting with the delegation from the ICAC is the beginning of Nigeria’s quest to revamp the textile industry as part of the broad objective for industrializing the economy. He said Imo State and the Southeastern region will be key to the renewed effort to revamp the cotton/textile sector with the bid to create jobs for the people and for the overall industrialization drive of the country. “The opportunity created by the meeting is a new beginning in our quest for industrial recovery and creation of jobs for our teeming youths as well as an opportunity for a new partnership”, Mr Uzodimma said.
Source: aljazirahnews
