Bangladesh is the third largest exporter of textile and apparel products globally. Its textile and apparel exports grew at a CAGR of nine per cent over the last five years while imports increased at a CAGR of seven per cent. Cotton textiles is the largest imported category by Bangladesh, representing 55 per cent of total textile and apparel imports. This is followed by manmade textiles, others and apparel with a share of 35 per cent, 6.8 per cent and 3.2 per cent respectively.
China is the largest supplier accounting for a 58 per cent share. India is the second largest supplier of textile and apparel products to Bangladesh. Cotton textile is the largest category with a share of 77 per cent in India’s textile and apparel exports to Bangladesh. This is followed by manmade textiles and apparel having a share of 17 per cent and four per cent respectively.
Currently Bangladesh imports yarn and fabric from China, India and other nations to fill the demand-supply gap. However, many new investments are planned in the spinning and weaving sectors of Bangladesh in the coming years. Thus Bangladesh is expected to emerge as a self-sufficient textile and apparel hub by focusing more on backward integration within the next 10 years. This is expected to lower export opportunities for China and India.
Hence, while Bangladesh is a key export market for Indian textiles, it will be important for Indian firms whose major export market is Bangladesh to look for newer markets for their exports in the coming years.