Indian textile sector hopes to benefit as global pressure grows on Bangladesh’s garment industries in the wake of two major industrial disasters that claimed over 1200 lives.
The US government last week suspended its GSP facility to Bangladesh expressing concern over its poor labour practices and industry safety.
Though this may not directly affect Bangladesh’s garment sector, as the item is not covered by the US GSP, India’s leading textile bodies say western buyers may review sourcing from Bangladesh.
The recent decision of the Walt Disney to stop sourcing its products from Bangladesh only further bolstered their hope.
Echoing the textile sector’s mood, Secretary General of the Confederation of Indian Textile Industry DK Nair said developments in Bangladesh would result in some orders getting diverted to India.
But he was quick to add that India did not want to gain out of its neighbour’s plight.
Delhi has set a target of $50 billion in exports of textiles, including garments, during the financial year 2014-15. To achieve this, it is planning to aggressively target US and European markets.
An official in the textiles ministry during a telephonic conversation with bdnews24.com said New Delhi was keenly monitoring the developments in Bangladesh but for obvious reason he did not wish to comment on whether India would gain out of Bangladesh’s woes.
But HKL Magu, CMD of Jyoti Apparels, says India could get $1 billion worth of additional orders in the current fiscal.
In 2012-13 fiscal, India exported textiles worth US$ 31.7 billion.
Industry insiders claim already some big overseas brands have started making inquiries with Indian garment producers.
“There have been few enquiries but it will take at least two to three months to get the exact picture. But definitely there is an opportunity here,” A Sakthivel, president of the Tirupur Exporters’ Association, said.
Sakthivel’s comment assumes significance as Tirupur in India’s southern state of Tamil Nadu contributes 40 percent of the country’s knitwear garment export.
The textile town’s exports amounted to Rs 13,000 crore last year, about a third of which had headed for the US.
The textiles sector is India’s second largest employer after agriculture with about 80 million people directly or indirectly depending on the sector for their livelihood.
Source: Bd news24
