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Bangladesh has come under scrutiny after reports surfaced suggesting it is routing textile exports through the Maldives rather than traditional Indian ports.
Bangladesh has come under scrutiny after reports surfaced suggesting it is routing textile exports through the Maldives rather than traditional Indian ports.
Recent developments involving Bangladesh’s trade practices have stirred controversy, raising concerns over the state of India-Bangladesh relations. Following the recent shift in Bangladesh’s export strategy, experts and officials are debating the implications for both countries. Bangladesh has come under scrutiny after reports surfaced suggesting it is routing textile exports through the Maldives rather than traditional Indian ports. This change could potentially undermine India’s revenue from trade and raise alarms about the growing rivalry between the two nations.
A report by The Mint indicated that Bangladesh has begun shipping garments to the Maldives by sea, from where they are then flown to major global retailers such as H&M and Zara. This route is seen as a strategic move to enhance efficiency and control over the supply chain, enabling Bangladesh to meet the demands of the fast-paced international textile market. However, this could significantly impact the revenue generated by Indian ports and airports, which previously handled a substantial volume of Bangladeshi goods.
Deepak Tiwari, Managing Director of MSC Agency (India) Pvt Ltd, highlighted that the rerouting of Bangladeshi garments away from Indian airports is already affecting local revenue streams. “The shift means a loss of income for our ports and airports that once processed these shipments,” he stated.
However, representatives from Bangladesh strongly rejected the claims made in the report. An official from the Mediterranean Shipping Company (MSC) labelled the assertions as “completely false,” emphasising that no shipments are currently being sent to the Maldives for redistribution to global markets.
Ziaur Rahman, regional country manager for H&M in Bangladesh, echoed this sentiment, noting that air shipments constitute less than 1 percent of their overall transportation strategy and are only used for specific promotional campaigns.
Industry experts are divided on the implications of this development. Some believe that if true, the change in shipping routes could weaken trade relations between the two countries, with potential repercussions for India’s economic interests. A government source confirmed that authorities are closely monitoring the situation to assess its impact.
On the other hand, many in Bangladesh view the reports as an attempt to sow discord between the neighbouring countries. Nasir Ahmed Khan, vice-president of the Bangladesh Freight Forwarders Association, dismissed the claims as “false rumours,” pointing out logistical challenges, such as the lack of direct shipping routes from Chittagong to the Maldives and the high costs associated with airlifting goods.
In March 2024, the Maldives Airports Company Limited introduced a new sea-to-air cargo transshipment service, designed to facilitate exports from Bangladesh. The inaugural shipment reportedly included garments transported by sea to the Maldives and subsequently flown to Germany, raising questions about the feasibility and cost-effectiveness of such a route.
As the situation evolves, it remains to be seen how both nations will navigate this complex trade landscape, balancing economic interests with regional stability.
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