Bangladesh, the world’s largest garment producer, has made a strategic pivot in its export route, opting to bypass India and instead ship its textiles through the Maldives for onward global distribution. This unexpected rerouting is more than just a logistical shift—it signals a shift in regional dynamics that could have a lasting impact on India-Bangladesh trade relations.
Historically, Bangladeshi goods traveled through India’s airports, contributing valuable cargo revenue to India’s ports and airlines. But now, in a bid for greater autonomy and control over its supply chain, Bangladesh has chosen an alternative path. With the help of the Mediterranean Shipping Company (MSC), a global shipping giant, Bangladeshi textiles are now transported by sea to the Maldives and then dispatched by air to high-profile clients like H&M and Zara. This shift means India is losing out on the revenue it previously generated from handling Bangladeshi cargo—a financial blow amid already tense bilateral ties.
The move comes as Bangladesh’s textile sector, which accounts for a staggering 80% of its exports and 13% of its GDP, is under pressure to ensure timely delivery to meet the tight deadlines of international fashion markets. By bypassing India’s often congested ports, Bangladesh hopes to avoid delays and maintain its competitive edge. “This new route gives Bangladesh a strategic advantage,” notes Arun Kumar, president of the Association of Multimodal Transport Operators of India. “With better reliability, Bangladesh gains greater control over its supply chain, avoiding reliance on Indian ports.”
Indian authorities are taking note of this change. The Indian government is reportedly considering measures to protect its own interests, especially given that many Bangladeshi textiles are produced in factories owned by Indian companies in Bangladesh. Officials are now exploring a balanced approach to keep these exports beneficial to both countries.
While Indian industry insiders claim that Bangladeshi shipments are merely rerouting due to India’s airport congestion, others see it as a potential harbinger of economic shifts in South Asia. Some, like Anil Buchasia from the Apparel Export Promotion Council, argue that the decision is in India’s favor, reducing strain on already busy Indian infrastructure.
As Bangladesh takes the reins of its supply chain, it’s also taking a stand for self-reliance in the cutthroat world of global fashion. By seeking faster, direct routes to international markets, Bangladesh isn’t just moving goods—it’s moving boundaries. And as its textile industry charts new paths, the ripple effects on regional trade and relationships are only beginning to unfold.
