The political instability in Bangladesh offers India a chance to capture a larger market share in the global textile and apparel industry as companies look to relocate production. Reports suggest that orders worth billions from major buyers in Europe and the US are already being redirected to Indian textile firms. c A key supplier of cotton yarn and fabrics to Bangladesh, India is affected by the crisis. Around 25 per cent of Bangladesh’s manufacturing facilities are owned by Indian companies, and both Indian and foreign firms operating there face concerns over production delays and market shortages. This has caused global brands to reevaluate their supply chains.
The world’s third-largest clothing exporter in 2022, Bangladesh relies heavily on its textile and garment industries, which make up 92 per cent of its merchandise exports. However, recent floods and power shortages have worsened production challenges, prompting global buyers to explore alternative hubs. Key Indian garment export centers like Tirupur, Ludhiana, Surat, Jaipur, and Noida are emerging as promising alternatives. Companies like Arvind Mills and Raymond are among the potential beneficiaries.
India’s RMG sector stands to benefit from both domestic demand and increased exports, as Western retailers restock and supply chains diversify under the China+1 strategy. Indian RMG exports to the US have grown, with the country accounting for nearly 60 per cent of India’s textile exports. Rising wages in Bangladesh and its upcoming loss of Least Developed Country (LDC) status in 2026 further position India as a competitive alternative.
However, India faces challenges, such as outdated labor laws and high logistics costs. A recent report shows that India’s textile exports have declined by 7.87 per cent over the past five years. To seize this opportunity, India must align its product offerings with global needs, negotiate trade agreements with key markets, and improve its infrastructure.
