The Gujarat-based textile and chemical industries have witnessed a resurgence in exports to Bangladesh following a recent improvement in the political situation there. Industry experts report that traders have started receiving fresh orders for cotton yarns and dye chemicals, reflecting a normalisation of business ties.
Bangladesh has long been a significant market for Gujarat’s textile and chemical sectors, accounting for a substantial portion of their exports. However, recent political unrest has disrupted trade flows. With the situation stabilising, exporters are cautiously optimistic about a return to normalcy.
The spinning sector, in particular, has been heavily reliant on Bangladesh as a major export destination. India’s exports of cotton yarn to Bangladesh in 2023-24 constituted 35% of its total yarn exports. Similarly, the state’s dye manufacturers supply around 3,500-4,000 tonnes of dyes, primarily reactive dyes, to Bangladesh each month.
While the payment situation has improved, exporters remain cautious and are closely monitoring developments in Bangladesh. Bharat Chhajer, former chairman of the Powerloom Development and Export Promotion Council (PDEXCIL), emphasised the need for prudent measures to ensure safe business practices.
Jayesh Patel, senior vice president of the Spinners’ Association Gujarat (SAG), noted that while exports have resumed and inquiries have increased, overall costs remain a concern. The textile and chemical industries in Gujarat have faced challenges due to the COVID-19 pandemic, and the recent political disturbances added to their woes.
Manish Kiri, managing director of a chemical company, underscored the importance of Bangladesh as a market for Gujarat’s dyestuff manufacturers. Reactive dyes, a major export from Ahmedabad to Bangladesh, account for approximately 15% of the state’s dye exports.
The normalisation of the business environment in Bangladesh has provided a much-needed boost to Gujarat’s textile and chemical industries. As trade flows resume, exporters are hopeful that the region can continue to strengthen its economic ties.
