Unrest in Bangladesh Likely to Impact Yarn and Fabric Exports
Short-term disruptions possible due to wage-related protests; Indian apparel exporters may secure additional orders in the long run
Ongoing protests over wages in Bangladesh’s garment factories are expected to impact the global textile supply chain, as well as India’s exports of yarn and fabric. According to Indian industry officials, this could lead to short-term trade disruptions. However, in the long term, Indian apparel exporters may find opportunities to secure additional orders.
Sanjay Jain, Group CEO of PDS Limited, noted that the disruption in factory operations in Bangladesh could have a temporary impact on India’s exports of yarn and fabric. Bangladesh accounts for approximately 45% of India’s total cotton yarn exports.
In the 2025-26 fiscal year, India’s total exports to Bangladesh amounted to $10.58 billion, with cotton yarn, fabrics, and handloom products contributing about $2 billion. Jain stated that factory disruptions could affect yarn procurement and increase the risk of payment delays.
Siddhartha Rajagopal, Executive Director of the Cotton Textiles Export Promotion Council, mentioned that the industry is working to adapt to these temporary disruptions. He expressed hope that the situation would return to normal soon.
According to Rahul Mehta, an advisor to the Clothing Manufacturers Association of India, the impact of supply chain disruptions is not immediately apparent. The current protests are relatively smaller in scale compared to previous ones. Nevertheless, a second consecutive wave of protests could heighten concerns among international buyers, who may take labor-related instability into account when placing future orders.
Opportunities for Indian Exporters
According to Jain, the direct impact on the import of Bangladeshi garments into India is likely to remain limited. This trade route was already constrained following the imposition of restrictions on land-based imports last year. However, branded retailers that source garments from Bangladesh may now face supply delays.
A major impact on Christmas-related supplies is unlikely, as the bulk of the stock destined for Western markets for the holiday season is typically shipped by early autumn.
Nevertheless, repeat orders and business for the upcoming season could be affected. Between November and February, Bangladeshi manufacturers secure approximately 40% of their annual export orders. In the event of a prolonged disruption, buyers might shift their orders for the 2027 spring-summer season to other countries. This could create opportunities for Indian textile and apparel exporters to secure new orders.
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