Bangladesh Political Crisis Hits Bhilwara Textile Industry
The ongoing political turmoil in Bangladesh has severely impacted the textile industry in Bhilwara, Rajasthan. For years, Bhilwara has relied on Bangladesh as a major market, exporting around 50% of its yarn and denim to the country. The total annual export value of these goods is estimated at approximately Rs 2,000 crore.
According to RK Jain, General Secretary of the Mewar Chamber of Commerce, Bhilwara’s textile sector has been hit hard, with monthly exports to Bangladesh worth Rs 150-200 crore suddenly coming to a halt. Despite Bangladeshi buyers not cancelling orders, local producers have suspended production due to uncertainties surrounding payments. The reduction in demand has created a crisis for the industry, which is struggling with reduced orders and halted operations.
Bhilwara is home to 450 weaving, 18 processing, 20 spinning, and 10 denim units, employing over 65,000 people directly and around 1,50,000 workers indirectly. The current disruption threatens the livelihoods of these workers and the stability of the local economy.
Bangladesh’s textile industry is one of the largest globally, exporting textiles to Europe, the US, and other markets. In light of the crisis, some industry experts believe that India could capture a portion of Bangladesh’s textile orders, potentially providing a significant boost to its own textile sector. If the situation in Bangladesh continues, India may need to explore alternative markets to mitigate the impact on its textile exports. While the short-term effects on Bhilwara are severe, seizing this opportunity could lead to long-term gains for the Indian textile industry.
