In the dynamic world of ready-made garment (RMG) exports, a recent report by Care Edge reveals a noteworthy shift: India's apparel industry is steadily narrowing the gap with Bangladesh, traditionally a dominant player in the global market.

According to a Care Edge report, although Bangladesh's RMG exports in 2023-24 were over three times that of India's, this ratio narrowed to 2.5 in the first quarter of the current fiscal year (Q1FY25). This indicates a considerable increase in India's market share, fuelled by a confluence of factors, including socio-political challenges in Bangladesh and proactive measures to boost India's competitiveness.

Key findings:

• Export ratio narrows: In the fiscal year 2023-24, Bangladesh's RMG exports were over three times that of India. However, during the first quarter of the current fiscal year (Q1rFY25), this ratio decreased to around 2.5, indicating India's growing presence.

• Factors driving change: This shift is attributed to a combination of factors, including:

o Socio-political challenges in Bangladesh: Recent upheavals have impacted Bangladesh's production and export capabilities.

o Proactive Indian initiatives: Various government and industry-led initiatives have bolstered India's competitiveness in the RMG sector.

Data Highlights:

Comparative Strengths: Bangladesh vs. India

While Bangladesh remains a formidable force in the global RMG market, India's apparel industry is making significant strides. By capitalizing on its strengths and addressing key challenges, India has the potential to further expand its market share and establish itself as a major player in the years to come.