New Delhi: The ongoing unrest in neighboring Bangladesh has inadvertently provided a boon for Indian garment exporters. In the first half of the current financial year, India has seen an impressive 8.5% increase in garment exports, contrasting sharply with a 15% decline during the same period last year. Notably, September alone recorded a remarkable 17.3% year-on-year increase in apparel exports.
The political turmoil in Bangladesh, a key player in the global textile supply chain, has led to a significant downturn in its exports. Specifically, Bangladesh’s apparel exports to the United States, its largest market, fell by 11%, dropping from $3.82 billion in January-June 2023 to $3.40 billion in the same timeframe in 2024. This disruption has created a favorable landscape for Indian exporters.
Sabu Jacob, Managing Director of Kitex Garments, based in Kerala, highlighted that the unrest in Bangladesh has contributed positively to the financial growth of not only his company but the entire Indian garment sector. Kitex Garments reported record turnover and profitability, with net profit soaring to ₹39.94 crore in Q2 FY25, nearly tripling from ₹13.21 crore during the same period in the previous fiscal year.
Bengaluru-based Gokaldas Exports has also identified the internal strife in Bangladesh as a long-term opportunity for the Indian garment industry. In their investor presentation for the June quarter, they noted, “Buyers are seeking alternate production bases outside China, creating opportunities for major Asian suppliers like India. Bangladesh is impacted by internal issues, and Vietnam faces high factor costs.”
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According to Ajay Sahai, Director General and CEO of the Federation of Indian Export Organisations (FIEO), India’s garment export sector has experienced significant growth, primarily due to the political instability in Bangladesh. Many buyers are now shifting their focus to Indian manufacturers to fulfill time-sensitive orders.
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Sahai expressed optimism, stating, “We expect that India could see a long-term increase of 10-20% in apparel export orders, potentially translating into an additional $2-3 billion annually. This shift is expected to benefit India’s established garment hubs.” Similarly, Ajay Srivastava, founder of Global Trade Research Initiatives (GTRI), reported that international buyers are considering moving 10-15% of their orders from Bangladesh to India, which could contribute an additional $300-400 million in monthly business for India.
