The political turmoil in Bangladesh appears to have benefitted India as readymade garments exports in September have increased 17.3 per cent from a year ago.
The growth comes at a time other apparel-exporting countries have experienced a slowdown.
Despite global headwinds, including inflation and supply chain disruptions, India’s exports have benefitted from Bangladesh’s political instability.
“India’s readymade garment (RMG) exports have recorded high growth despite global headwinds and continued inflationary pressure,” said Sudhir Sekhri, chairman of the Apparel Export Promotion Council (AEPC). “Even the major apparel-exporting countries have witnessed a slowdown in the RMG export growth in recent months.”
Bangladesh, one of the world's top garment exporters, is grappling with socio-political unrest, which has led to the temporary closure of some factories.
“If the socio-political disturbances in Bangladesh persist for more than one or two quarters, their exporters could face challenges in ensuring on-time delivery,” according to a CareRatings report.
"In such a scenario, India could gain monthly export orders worth $200-250 million in the near term."
With operational efficiencies and backward integration, Indian exporters could permanently capture market share from Bangladesh, the report added.
The situation has opened new opportunities for Indian exporters to expand their global footprint.
Sekhri has announced plans to participate in international fairs and host Bharat Tex 2025, a key event for India’s apparel sector.
“We held roundtables with global brands and buying consultants, and their presence indicated a strong willingness to forge deeper relationships with Indian exporters,” he said.
The AEPC will conduct international roadshows in Spain and New York to showcase Indian trade, technology and tradition.
Mithileshwar Thakur, secretary-general of the AEPC, said India is increasingly being seen as a preferred sourcing destination. “Indian apparel exports are logging impressive double-digit growth in recent months,” he said.
The growth trajectory has been buoyed by expanding markets in countries that have signed free trade agreements (FTAs) with India.
“FTA partner countries are now paving the way for RMG market expansion and growth,” Thakur said.
