It is natural that the turmoil currently engulfing Bangladesh will have a significant impact on India's industry. In Surat, many traders conduct direct business with Kolkata in West Bengal, from where a substantial quantity of goods is sent to Bangladesh. The textile industry in Surat is particularly affected, as it has both direct and indirect business links with Bangladesh. Given the situation and the current environment there, it appears that business will take some time to improve.
Rakesh Shah, an agent at the Adarsh-2 textile market on the ring road, shared insights on the situation. He mentioned that conditions in Bangladesh are currently dire, and the future is uncertain. "No one knows what will happen next. Fortunately, there were no customers for two to three months, otherwise, if more goods from Surat had been shipped to Bangladesh, a lot of money would have been stuck."
Explaining the business dynamics, Shah noted, "In Bangladesh, payments are made only when goods are sent from here. If Bangladeshi businessmen do not pay Kolkata traders, the Kolkata traders in turn withhold payments to Surat traders. Thus, the lack of customers last month was somewhat beneficial as it prevented potential losses."
Shah reminisced about the tenure of former Prime Minister Sheikh Hasina, describing it as a prosperous period for business. "Many people were involved in trade then, but now loans will need to be given with great caution. The current environment is unlikely to be as business-friendly as it was during Hasina's tenure. Although there were no customers recently, there was hope for future business, but that too seems to be diminishing now. Overall, this year does not look promising for business."
The ongoing crisis in Bangladesh is casting a shadow over the future of Surat's textile industry, raising concerns about delayed payments and uncertain business prospects.
