India in trouble as Bangladesh changes export trade route
Bangladesh has stopped exporting textiles and ready-made garments through Indian airports and seaports. By changing the export route, Dhaka is now sending ready-made garments to various countries via the Maldives. New Delhi is facing losses due to this, depriving it of a huge amount of revenue.
This news was reported by the Indian media Livemint on Saturday (November 2), citing at least three officials related to exports.
Deepak Tiwari, Director General of Mediterranean Shipping Company (MSC), one of India’s largest cargo transport companies, told the media that earlier Bangladeshi textiles and ready-made garments were exported through Indian airports. However, now they are no longer using Indian airports. They are using other routes. As a result, India is now being deprived of the revenue that it used to earn from the cargo of these products.
On the other hand, some officials of the country’s seaports said that Bangladeshi garment products are first going to the Maldives by sea, avoiding Indian seaports. From there, they are being transported to various destinations worldwide by air. These products include clothing from world-renowned companies like H&M and Zara.
The report said that if Bangladesh exports goods through other countries while showing a thumbs-up to India, the trade relations between Dhaka and Delhi could weaken. At the same time, the cooperative opportunities in logistics and structural projects could be in jeopardy.
After Dhaka’s decision, the Indian central government is now looking for a solution that benefits both sides to protect the interests of both parties, an official said. The official said that most of the ready-made garment products that Bangladesh exports are manufactured in Indian infrastructure or factories. These companies are owned by India and New Delhi is keeping an eye on this.
Another official said, “New Delhi is looking for a compatible solution to such a decision by Bangladesh. Which will reconsider the issue of Bangladesh’s large export of ready-made garment products via India and protect India’s national interests.”
Another official said, “A large part of these products exported by Bangladesh are manufactured in Indian infrastructure or factories. Which are run by Indian companies located in Bangladesh. This matter is under the (Indian) government’s attention. We are now trying to assess how it might affect India.’
However, the industry expert said he did not think Bangladesh had taken such a decision out of any resentment towards India. He believed that Bangladesh had taken such a decision mainly due to control over its own supply chain and the inability to export goods through Indian ports on time.
