Bangladesh crisis threatens supply chains for Indian textile companies, warns CITI

The current political turmoil in Bangladesh, described as the most severe since the country's independence in 1971, poses a significant risk to supply chains and production schedules for Indian textile companies, according to Chandrima Chatterjee, Secretary General of the Confederation of Indian Textile Industry (CITI). The political unrest threatens to disrupt Bangladesh’s textile sector, which has been pivotal in strengthening trade between the two countries.

The ongoing instability, including widespread anti-government protests and the resignation of Prime Minister Sheikh Hasina, has led to the establishment of an interim government by Army Chief General Waqar-uz-Zaman. This unrest is causing fears among Indian textile firms of potential delays and shortages, which may force them to seek alternative manufacturing solutions.

As a result, there is a noticeable shift toward other manufacturing hubs, with Tiruppur, a major textile center in India, potentially benefiting from this realignment. Chatterjee highlights that the crisis in Bangladesh could have broader implications for global supply chains, warning that major international brands relying on Bangladeshi textiles might experience delays and reduced product availability, impacting inventory levels and sales globally.