Uncertainty Looms Over Indian Garment Industry Amid Bangladesh Crisis

Finance Minister Nirmala Sitharaman expressed concern about the Indian garment and knitted fabric sector's uncertainty due to the political crisis in Bangladesh. The conflict has escalated after Prime Minister Sheikh Hasina's resignation. Nobel laureate Muhammad Yunus heads the interim government, aiming to restore stability amid increased exports from Bangladesh due to liberal trade policies with India.

Finance Minister Nirmala Sitharaman on Saturday expressed concerns regarding the Indian garment and knitted fabric sector, which faces uncertainty due to the ongoing political crisis in Bangladesh. Speaking during a media interaction post the Budget address to the central board of the Reserve Bank of India, she emphasized the hope that the interim government in Bangladesh would resolve the turmoil sooner rather than later.

The minister noted that Indian textile investments, particularly from Tamil Nadu, have performed well in Bangladesh. She attributed the increased exports from Bangladesh to India to the duty-free and quota-free policies extended towards low-income countries.

The crisis in Bangladesh, which intensified following Prime Minister Sheikh Hasina's abrupt resignation and departure to India, led to the formation of an interim government headed by Nobel laureate Muhammad Yunus. Yunus's immediate priority is to stabilize the nation amidst ongoing protests, aiming to return both India and Bangladesh to a state of normalcy.

(With inputs from agencies.)