Swedish fashion retailer H&M has announced that it will phase out its manufacturing operations in Myanmar due to reports of labor exploitation. This move is likely to shift the focus of global retailers to neighboring markets like India, which has been actively enticing them to increase their sourcing from the country.

India is a major player in the global apparel industry, and its domestic market is five to six times larger than its export market. The country has a large and skilled workforce, as well as a favorable regulatory environment for businesses. In addition, India is increasingly seen as a reliable and ethical sourcing destination.

H&M and other global retailers are already increasing their sourcing from India. For example, Uniqlo India is on track to achieve 30% domestic sourcing, while H&M India plans to add six new stores in the current year.

The exit of H&M from Myanmar is a setback for the country's apparel industry. However, it is also an opportunity for India to emerge as a leading sourcing hub in the region.

The Indian government has been taking steps to make the country more attractive to foreign investors, such as simplifying the regulatory environment and providing incentives for businesses.