India is poised to become a favorable option for clothing brands looking to diversify their sourcing away from countries where they currently have significant exposure, opines SivaramakrishnanGanapathi, Managing Director, Gokuldas Exports.
The recent events in Bangladesh might accelerate the diversification plans of many clothing brands, Ganapati points out. India's extensive supply chain will attract retailers to consider incremental sourcing from the country, he adds.
Gokuldas Exports collaborates with numerous global garment retailers, including those operating in Bangladesh. However, the country recently experienced significant unrest due to protests against a government policy reserving 30 per cent of civil service jobs for freedom fighters and their descendants. This political turmoil led to the resignation and subsequent escape of Prime Minister Sheikh Hasina,
Ganapathi believes, this instability could compel retailers to reconsider their sourcing strategies, with India emerging as a potential alternative. However, it may still be too early to see a substantial shift in sourcing or changes in orders from Bangladesh, he warns.
In terms of cost, Bangladesh currently has several advantages over India, such as lower labor costs, a weaker currency, and duty-free access to European markets. As India's free-trade agreements with the UK and Europe progress, the competitive landscape could change, potentially leveling the playing field, Ganapathi notes.
