India’s garment exports surge 17.3% as Bangladesh’s unrest disrupts its supply chain, opening new global opportunities for Indian exporters.
India’s garment industry is seeing an unexpected boost as political unrest in Bangladesh, a major global supplier, disrupts its textile production. India’s exports of ready-made garments rose by 17.3% in September compared to the same period last year, demonstrating the country’s ability to capitalise on Bangladesh’s instability, despite ongoing global challenges like inflation and supply chain interruptions.
The turmoil in Bangladesh has led to factory closures and disruptions in production, affecting its capacity to meet international orders on time. With Bangladesh struggling, India’s exporters have stepped in to fill the gap, benefiting from the increased demand and growing their presence in the global market. According to a recent CareRatings report, “If the socio-political disturbances in Bangladesh continue beyond one or two quarters, their exporters could face ongoing delivery challenges.” This disruption is projected to translate into $200-250 million in monthly export orders for India in the near term.
Indian manufacturers are positioned to potentially capture this market share permanently. The CareRatings analysis suggests that Indian exporters could solidify these gains through strategic measures such as backward integration and operational efficiencies, which would enhance their competitive edge globally.
In response to this promising outlook, the Apparel Export Promotion Council (AEPC) plans to promote Indian garment exports through international roadshows in Spain and New York. These events aim to raise awareness of India’s capabilities in textiles, leverage advancements in technology, and address the streamlined customs process, appealing to global markets. Free trade agreements (FTAs) with various nations have further supported India’s exports, offering access to growing markets and bolstering the industry’s positive trajectory.
As Bangladesh’s unrest continues, India’s garment exporters are seizing the opportunity to expand their footprint, potentially shifting the balance of the global textile trade and solidifying India’s position as a reliable supplier of quality garments.
