Myanmar Earthquake: Indian businesses may suffer losses worth crores

Businesses dealing in pharmaceuticals, textiles, and chemicals fear potential disruptions due to infrastructure damage and communication challenges, which could impact shipments and payments. The massive earthquake that struck Myanmar and Thailand on Friday, March 28, has raised alarm among India’s business community, particularly in Gujarat, which shares strong trade ties with these countries. Exporters fear that disruptions to infrastructure and communication networks could impact shipments worth crores.

Gujarat has long-standing economic links with Myanmar and Thailand, with key exports spanning textiles, pharmaceuticals, and chemicals. According to the Gujarat Association, the state’s textile industry alone exports garments and grey fabric worth ₹600 crore annually to these markets. Pharmaceutical exports total ₹2,100 crore, while the chemical sector contributes ₹100 crore, primarily in dyes and industrial chemicals. Timber and wood exports, crucial for furniture manufacturing, may also be affected.

Former PDEXCIL Chief Bharat Chhajed told CNBC Awaaz that he spoke with Myanmar’s industry minister, Dr Charlie Than, who confirmed significant damage in Mandalay. Many telephone lines are down, making communication difficult.

Exporters are bracing for shipment delays, payment disruptions, and logistical challenges. Chhajed warned that if the damage is extensive, orders from these countries could slow, payments may be delayed, and supply chains could be strained.

Business groups have urged the government to introduce relief measures to mitigate financial losses and ensure trade stability with Myanmar and Thailand.