Bangladesh update: Garment, Knitted sector is seeing some kind of uncertainty because of Bangladesh, says FM Sitharaman
Bangladesh unrest: Union Finance Minister Nirmala Sitharaman on Saturday said the current unrest in the neighboring Bangladesh has affected the garments and knitted sector in India. It is to be noted that Bangladesh has seen intense and violent demonstrations against the Sheikh Hasina government in the last three weeks that culminated in her resignation. An interim government under the leadership of Nobel Laureate Muhammad Yunus assumed control of the country’s administration.
Talking about the current unrest in Bangladesh, FM Sitharaman said: “I would say at the stage that many and I’ve also had discussions and calls coming on the matter of our textile garment investments which are in Bangladesh, many of whom who come from Tamil Nadu. The investments went there in good faith and they did well having gone there. The exports from Bangladesh also increased and I know also because of the duty and quota liberal approach that we have towards low-income countries, they could even export to India and we were there for importing first. So particularly the garment and knitted fabric sector is seeing a bit of uncertainty because of that. I hope that the investments are all safe other than that at this stage, it’s too early for me to see what kind of an impact this situation in Bangladesh will have on our economy.”
“You’ve had the Prime minister’s observations coming, a statement by the external EAM in the Parliament and the efforts that are being taken to ensure that our borders are safe. I hope that the interim government will settle things sooner rather than later so that both the people of Bangladesh and India can get back to normalcy,” she added.
Bangladesh’s textile industry is a crucial component of its economy, contributing to 80% of its exports and constituting 15% of its GDP. The nation predominantly exports textiles to the European Union, the United States, Canada, Australia, and Japan. India plays a vital role as an export partner, supplying 20%-25% of the yarn that Bangladesh imports for producing garments.
