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Dhaka's Decision on Garment Exports Leaves Delhi Concerned

Rtv News

  03 Nov 2024, 08:28
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Bangladesh has halted the export of garments through India’s air and sea ports. Instead, Dhaka is now routing these products through the Maldives to various destinations worldwide, resulting in significant revenue losses for Delhi.

Indian media outlet LiveMint reported this on Saturday, November 2, citing relevant Indian officials.

Deepak Tiwari, Director General of MSC Agency (India), one of India’s largest cargo carriers, informed the outlet that Bangladesh is no longer using Indian airports for garment exports. Consequently, the revenue India previously earned from these shipments is now lost.

Additionally, officials at India’s seaports revealed that Bangladeshi garment products are first being sent to the Maldives before being airlifted to destinations worldwide. These products include apparel from global brands like H&M and Zara.

Officials noted that Bangladesh, the world's second-largest apparel exporter, previously shipped billions of dollars worth of goods globally via India, generating substantial revenue for India. By bypassing India, Bangladesh's new export route may weaken commercial ties between Dhaka and Delhi, potentially jeopardizing collaborative opportunities in logistics and infrastructure projects.

However, an Indian government official expressed confidence that a mutually beneficial solution will be found to safeguard India’s interests.

Another official pointed out that a significant portion of the garments Bangladesh exports are produced in Indian-owned factories or infrastructure within Bangladesh, which Delhi is also closely monitoring.

Industry expert Arun Kumar suggested that Bangladesh's decision may stem from frustration over a lack of control over their supply chain and delays in shipments through Indian ports.

He added that this new route provides Bangladesh with strategic advantages and improved reliability—crucial for the strict deadlines of the international apparel market. By reducing dependence on Indian ports, Bangladesh is gaining more control over its supply chain.

Arun Kumar also emphasized that garment products are perishable in nature; if shipments don’t arrive on time, orders are canceled.

A representative from India’s Apparel Export Promotion Council stated that India will not be significantly affected by Bangladesh’s decision, as Indian ports are already quite busy. In fact, they had previously urged the Indian government to restrict the export of Bangladeshi garments via Indian ports.

Another official clarified that this halt on garment exports through India has no connection with the political situation involving Sheikh Hasina’s government.

In the 2023 fiscal year, Bangladesh exported garments worth $46.49 billion. In the 2024 fiscal year, garment exports dropped by 4.34%, totaling $44.47 billion. In an effort to avoid delays and increase exports, Dhaka began routing shipments via the Maldives in March 2024.

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