The deepest area of the political crisis in Bangladesh is blowing its shockwaves toward the global textile industry. Violent protests and the stepping down of the Prime Minister make many people fear for the future of Bangladesh’s garment sector.
This uncertainty has sent Indian textile stocks surging. Stocks of Gokaldas Exports, Century Enka, and SP Apparels surged as much as 20% on Tuesday. The investors believed that global clothing brands may shift production away from Bangladesh and towards India.
While this is good news for Indian textile manufacturers, it may prove to be a setback for yarn exporters since Bangladesh is one of their biggest customers. Share prices of companies like Marico, which have a significant presence in Bangladesh, fell because of the crisis.
The situation still remains volatile, with nobody being able to predict how long this unrest in Bangladesh will sustain. At the same time, the potential for more business in the textile industry is undeniable on Indian shores.
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Source: ET
News Desk
