Bangladesh, the world’s second-largest garment exporter, is reportedly redirecting textile shipments to global markets through the Maldives instead of India, according to Mint. This move is seen as a strategic shift away from using Indian ports and airports, which could impact India’s cargo revenue, affecting trade and logistics collaboration between the two nations.
Citing sources, Mint notes that textiles are rerouted by sea to the Maldives, then sent by air to major clients like H&M and Zara. The redirection could lead to a significant revenue loss for India from handling Bangladeshi exports and raises concerns about the impact on the Indian logistics sector. Deepak Tiwari of MSC Agency of India explained that this change diverts revenue that Indian ports previously generated.
Bangladesh’s decision is reportedly aimed at avoiding delays at Indian facilities, thus enhancing supply chain control and meeting critical shipment deadlines. By leveraging Maldives’ routes, Bangladesh ensures better timing, which is essential for the fast-paced fashion industry. Arun Kumar from India’s Association of Multimodal Transport Operators noted the importance of timely deliveries, as late shipments often lead to rejected consignments.
While some Indian stakeholders downplayed the issue, Mint suggested this strategic rerouting helps Bangladesh retain control over its supply chain amidst broader economic pressures, including a decline in garment exports in FY24.
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