Bangladesh political crisis raises global enquiries for Indian exporters of garments

However, to capture the market share and seize opportunities arising from supply chain reorientation due to Bangladesh’s challenges and also US President-elect Donald Trump’s tariff threat to China, the government must step in with appropriate support, Mithileshwar Thakur, Secretary General, Apparel Export Promotion Council, told businessline.  “The support sought by the industry include introducing PLI 2.0 scheme on an urgent basis for all types of garments, irrespective of fibre, with reduced investment threshold, reviving technology upgradation scheme for the micro industry, continuation of the interest equalisation scheme for exporters and allowing flexibilities and more concessions in fabric and machinery imports for the textiles sector,” Thakur said.

The time for some policy push is appropriate as India’s export of garments and textiles, after a lull of about two years, is experiencing a turnaround in the on-going fiscal in response to favourable factors such as higher demand from key markets, lower global inventories, and relatively low raw material prices, industry associations have asserted.

In April-November 2024 period, apparel exports from India posted a 11.39 per cent increase (year-on-year) to $9.85 billion while textile exports increased 3.9 per cent to $13.47 billion, per figures put together by the Confederation of Indian Textiles Industry (CITI). The export growth in both garments and textiles outpaced the overall growth rate of 2.17 per cent for all commodities in the period. “The Bangladesh crisis has opened new avenues as enquiries from brands like Primark, Tesco, Decathlon, Duns, Kik Clothing, JCPenney, GAP and Walmart are being received by the country’s exporters, particularly in the Tirupur cluster. Order conversion is expected for shipment early 2025…India must act swiftly to enhance its production capacity, shorten production cycle times, and remain export competitive and efficient,” Thakur said...India, on the other hand, ranks sixth in garments exports accounting for about one-third Bangladesh’s share in FY23.

However, several prominent European brands are reported to have decided not to further increase their exposure to Bangladesh for sourcing due to political instability and the country’s foreign exchange crunch which hinders import of fabrics, Thakur said.   

“With a strong focus on improvement of infrastructure, enhancement of capacity, and emphasis on technology, India is well-positioned to attract these redirected investments,” he added.

The textile industry is hopeful that Bharat Tex 2025, the mega textile event which will bring together global brands, retail chains and potential investors next month, will further strengthen the country’s position as a prominent player in the global textile eco-system, the AEPC official said.