India, 9th of August, 2024 : The Clothing Manufacturers Association of India (CMAI) expresses concern over the recent instability in Bangladesh, which has significantly disrupted the supply chain over the past few weeks.
Despite these challenges, CMAI believes that there may not be a significant impact on Bangladesh’s Garment Industry. Long-standing relationships and pre-existing business orders will serve as a buffer against the current disturbances.
However, if the disturbances were to continue for a a couple of months more, there is certainly likely to cause a long term impact on Bangladesh Industry.
India too is likely to be impacted if the disturbances continue. On one hand, Indian Exporters can see an opportunity of International Buyers seeking an alternative sources of supply. Also, Indian Brands and Retailers currently buying from Bangladesh factories may look for shifting some of their needs to Indian manufacturers. On the other hand, India’s exports of raw materials to the Bangladesh Apparel Industry would be hit.
A few retailers and brands with franchise stores in Bangladesh would have experienced disruptions in their operations over the past month or two. These disruptions are expected to continue for another two weeks before normalcy returns.
Rajesh Masand, President, Clothing Manufacturers Association of India (CMAI), expressed, “The recent events in Bangladesh have undoubtedly 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. With the new leadership taking charge, we believe that stability and normalcy will return swiftly.”
“With the army exerting significant influence, it is expected that law and order will soon return to normal. The new nominated Prime Minister being a person of great intellect and maturity, would ensure the swift restoration of normal operations,” He further added.
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.
CMAI is the only Indian Association that represents the entire Indian Apparel Industry & Trade on prestigious international forums such as International Apparel Federation (IAF) headquartered in Netherlands.
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