Garment sector hit by Bangladesh crisis; normalcy may return soon: FM
Indian garment sector is facing uncertainty amid Bangladesh crisis, we are hoping for quick resolution, says Sitharaman
Union Finance Minister Nirmala Sitharaman said on Saturday (August 10) that the Indian garment and knitted fabric sector is experiencing some uncertainty due to the Bangladesh crisis, but expressed hope that the interim government there will resolve the situation "sooner rather than later."
Interacting with the media on the sidelines of customary post Budget address to the central board of Reserve Bank of India, she said efforts are being taken to ensure that borders with the neighbouring country are safe.
With regard to Indian investments, she said, the textile industry particularly from Tamil Nadu has made investments there in good faith and they have done well having gone there.
What kind of impact will it have?
"The exports from Bangladesh also increased because of the duty and quota liberal approach that we have towards low-income countries. They (Indian garment industry based in Bangladesh) could even export to India." Particularly, she said, the garment and knitted fabric sector is seeing a bit of uncertainty because of the crisis in the neighbouring country.
"I hope that the investments are all safe... it's too early for me to see what kind of an impact this situation in Bangladesh will have on our economy. I hope that the interim government will settle things sooner rather than later so that both the people of Bangladesh and India can get back to normalcy," she said.
Earlier this week, Bangladesh plunged into a political crisis when Sheikh Hasina resigned as the Prime Minister and fled the country. Soon after Parliament was dissolved leading to the creation of an interim government.
Yunus new PM
The 84-year-old Nobel laureate Muhammad Yunus on Thursday took oath as the head of an interim government, replacing Sheikh Hasina who abruptly resigned and fled to India leaving the country in turmoil following deadly protests against her government over a controversial quota system in jobs.
On Friday, Bangladesh's interim leader Yunus announced the portfolios of his 16-member council of advisors and named a former top diplomat to head the foreign ministry.
The Nobel laureate's first task is to bring stability to Bangladesh after he responded to a call by student protesters for him to temporarily lead the country following weeks of deadly anti-government demonstrations against the government led by Sheikh Hasina.
(With agency inputs)
