India, August 9, 2024: Concerned about the recent turmoil in Bangladesh, which has severely interrupted the supply chain over the past several weeks, is the Clothing Manufacturers Association of India (CMAI).
CMAI thinks that the garment industry in Bangladesh might not be significantly impacted in spite of these difficulties. Existing business orders and established ties will provide as a cushion against the current disruptions.
However, there is a good chance that the disruptions will have a long-term effect on Bangladeshi industry if they last for a few more months.
In case the disturbances persist, India is also expected to be affected. On the one hand, foreign buyers looking for a different supplier present a chance for Indian exporters. Additionally, Indian retailers and brands that now purchase goods from factories in Bangladesh can consider moving part of their requirements to Indian producers. However, this would negatively impact India’s raw material exports to the Bangladeshi apparel industry.
There have probably been some operational hiccups for a few franchised merchants and brands in Bangladesh within the last month or two. It’s anticipated that these delays would last for an additional two weeks before things get back to normal.
“The recent events in Bangladesh have certainly disrupted the supply chain, but the garment industry, which accounts for about 80% of all Bangladesh’s exports, is too vital for any government to allow prolonged disruption,” said Rajesh Masand, President of the Clothing Manufacturers Association of India (CMAI). We think stability and normalcy will return quickly with the new leadership in place.”
With the army having such a large say, things should quickly revert to normal in terms of law and order. The newly proposed prime minister, a highly intelligent individual, & maturity would ensure the swift restoration of normal operations.
About CMAI
The Clothing Manufacturers Association of India (CMAI) is the most representative association of the Indian apparel industry having over 5000 members and serving more than 25,000 Retailers. Its Membership consists of Manufacturers, Exporters, Brands, and ancillary industry.
CMAI advocates regarding policies and also guides and encourages its members on ESG related matters and initiatives. In 2019, CMAI launched the SU.RE initiative to encourage members to embrace sustainability.
Established sixty-one years ago, CMAI has contributed immensely towards development of the industry. In 1978, CMAI had led the creation of the Apparel Export Promotion Council (AEPC). CMAI is also authorised by the Government of India to issue Certificate of Origin (Non-Preferential) to Exporters.
