Bangladesh’s export earnings from the apparel industry saw only a 0.20 per cent rise 2016-17. While India’s earnings from apparel exports rose by 12 per cent in 2016-17. In the last fiscal, garment shipments from Bangladesh to India were down 4.85 per cent year-on-year.

The value of the taka against the dollar, poor infrastructure and shortage of power and gas are the key challenges for the export oriented readymade garment sector in Bangladesh. Garment buyers are shifting to India from Bangladesh due to the inefficient port facility and the extra lead time.

Garment production cost has increased near 18.01 per cent in the last two years in Bangladesh. Similar costs are also increasing in competing countries but the rate of increment is much higher in Bangladesh. With continuous increase in salaries, gas and electricity price, system losses, Bangladeshi apparel manufacturers are struggling to retain their advantage over major competing countries.

India has allowed global apparel brands to open stores in India with a clause that at least 30 per cent of their products are made in India. This policy helps the apparel manufacturing industry of India as it can manufacture global brands in its domestic factories.