Staff Report :
India’s readymade garment (RMG) exports grew by 17.3 percent year-on-year in September, capitalizing on the political instability in Bangladesh, one of the world’s top apparel exporters, according to The Telegraph of India. This growth comes despite global challenges such as inflation and supply chain disruptions, which have affected other major garment-exporting nations, the report states.
“India’s RMG exports have recorded high growth despite global headwinds and inflationary pressures,” said Sudhir Sekhri, chairman of the Apparel Export Promotion Council (AEPC).
“Many leading apparel exporters have experienced a slowdown in recent months, but India has benefited from Bangladesh’s socio-political unrest.”
According to the report, Bangladesh’s internal issues have forced some factories to close temporarily, causing delays in delivery schedules. A report by CareRatings indicated that if the unrest continues for more than one or two quarters, Bangladeshi exporters could face significant challenges in meeting deadlines.
This disruption could open opportunities for Indian exporters to capture monthly orders worth $200-250 million in the short term.
Indian garment exporters are further poised to capitalize on operational efficiencies and backward integration to gain permanent market share from Bangladesh. This development presents new opportunities for Indian apparel makers to expand their global presence, as international brands seek more reliable sourcing options, the report said.
Earlier on Saturday, the president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said in a press briefing that Bangladesh’s apparel industry has faced a production loss of approximately $400 million due to the recent worker unrest in September and October in the Savar, Ashulia, and Gazipur industrial areas.
Some orders have also shifted to competitor countries due to concerns over the law and order situation, the BGMEA president noted.
“We have fallen somewhat behind. In August, United States apparel imports increased by 1.5 percent. However, imports from Bangladesh decreased by 3.8 percent. Imports from China rose by 3.6 percent, Vietnam by 5.2 percent, India by 7.6 percent, and Cambodia by 7.7 percent,” he explained.
From January to July in Europe, imports increased by 3.3 percent, while those from Bangladesh grew by only 2.8 percent. In contrast, imports from India rose by 5.18 percent, Cambodia by 18.35 percent, and Vietnam by 12.61 percent.