Bangladesh skips India, reroutes global textile exports through Maldives

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Subscribe to enjoy similar stories. New Delhi: Bangladesh, the world’s largest garment producer, has opted to bypass India and ship its textile exports through the Maldives for onward distribution to global markets, hurting the cargo revenue prospects of India’s airports and ports amid strained bilateral ties, according to three people aware of the development. “Previously, Bangladeshi goods were shipped through Indian airports, but now they are rerouting shipments from other locations.

This shift means India’s airports and ports lose revenue previously earned from handling these cargoes," Deepak Tiwari, managing director of MSC Agency (India) Pvt Ltd, toldMint over the phone. The Mediterranean Shipping Company (MSC) is a leading global container shipping company. Bangladesh is rerouting its textile exports to the Maldives by sea and then dispatching cargoes by air to its global customers including H&M and Zara, the three people said.

The redirection of textile exports could weaken trade relations between India and Bangladesh and reduce the collaborative opportunities in logistics and infrastructure projects. It could also potentially threaten India’s revenue from port and transit fees, alongside business generated from Bangladesh’s exports that pass through Indian borders. Seized by the issue, the Indian government is exploring a balanced solution to ensure that Bangladesh’s textile exports—significant in volume and linked to Indian manufacturing hubs in Bangladesh—remain beneficial to Indian interests, one person said.