Bangladesh, the world’s leading garment producer, has chosen to bypass India by exporting textiles via the Maldives, redirecting goods by sea and then shipping them by air to global clients like H&M and Zara. This move aims to enhance control over its supply chain and reduce delays, according to sources, impacting revenue previously generated by Indian airports and ports.

Industry experts consider this shift a strategic move, with Arun Kumar, president of India’s Association of Multimodal Transport Operators, noting that by bypassing Indian ports, Bangladesh gains increased reliability, which is essential for meeting strict international deadlines. Textile shipments are highly time-sensitive, and delays can result in rejected consignments, impacting Bangladesh’s ability to deliver seasonal apparel to Western brands.

This redirection comes amid efforts by the Indian government to address the economic impact of losing transit revenue. A portion of these exports is linked to Indian-owned facilities in Bangladesh, highlighting the deep trade ties between the two countries. However, Indian exporters appear unfazed, noting that local airports are already congested, and pointing out that India’s Apparel Export Promotion Council had previously sought limits on Bangladeshi goods transiting through Indian hubs.

In FY24, Bangladesh’s garment exports fell by 4.34 per cent to $44.47 billion. Despite the rerouting, India remains a crucial supplier of raw materials to Bangladesh, with cotton shipments reaching $1.86 billion in FY24 alone.