Bangladesh skips India, reroutes garment exports through Maldives
Bangladesh, the world's second-largest garment producer, has opted to bypass India and ship its textiles to global markets through the Maldives, hurting the cargo revenue prospects of India's airports and ports amid strained bilateral ties.
According to sources referenced by the Indian business daily Mint, Bangladesh now ships its textile goods by sea to the Maldives, where they are then flown to global destinations, serving clients such as H&M and Zara.
'Earlier, Bangladeshi goods were shipped through Indian airports, but now they are rerouting shipments from other locations,' said Deepak Tiwari, Managing Director of MSC Agency (India) Pvt Ltd. He noted that this shift means lost revenue for India's ports and airports, which had previously profited from handling Bangladesh’s exports.
The redirection of these exports may impact trade relations and reduce collaborative efforts between India and Bangladesh in infrastructure and logistics, according to Mint. The move also threatens India’s income from port fees and other transit-related business that previously benefited from Bangladeshi exports passing through Indian borders.
The textile industry is critical to Bangladesh’s economy, representing 80% of the country’s exports and 13% of its GDP. Despite this, Bangladesh’s garment exports saw a 4.34% decline in fiscal year 2024, reaching $44.47 billion, as reported by Bangladesh Bank.
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