The recent tensions in Bangladesh have had a noticeable impact on India, particularly on Gujarat’s dyeing industry. The disruptions in cross-border trade and the impending uncertainty have created ripples through this industry.

The dyeing sectors in Ahmedabad’s Naroda, Vatva, and Odhav areas have been significantly affected, given their extensive transactional dealings of ₹800-₹1000 crore with Bangladesh. 

The Gujarat Dyestuffs Manufacturers’ Association (GDMA) chairperson Bhupendra Patel said that reactive dyes are exported to Bangladesh on a large scale to process fabrics and coloring them.

“Approximately 10-12% of the nation’s total chemical exports are directed to Bangladesh. However, these exports are currently at a standstill. It is estimated that the value of reactive dye exports from India to Bangladesh exceeds ₹2500 crores,” said Patel.

According to the GDMA chairperson, Usually, they receive a letter of credit (LC) payment within 90 days, but due to political tensions in Bangladesh, many consignments have been stopped midway.

Some consignments are stuck at the India-Bangladesh border. As a result, payments are delayed, and goods in transit are also stuck, said the GDMA head.

Sources from the chemical industry revealed that to avoid losses of suppliers in India, textile association heads have been contacted in Bangladesh to assess the situation.

Bangladesh businesspersons have suggested that the situation is likely to calm down soon. Once the instability subsides, normal trade and economic transactions will resume.

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