India’s Apparel Exports Hit $14.5 Bn in FY24 as Global Brands Shift Amid Bangladesh Crisis

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In recent months, India has become a hotspot for global apparel deals, and this surge is catching the attention of industry insiders. The catalyst behind this trend is the ongoing crisis in Bangladesh, which has long been a leader in apparel manufacturing.

Political instability and disruptions in Bangladesh have made it difficult for the country to meet global demand. This has led international brands to look for new manufacturing options. As a result, India’s strong textile industry is becoming a popular choice. These developments underscore India’s growing importance in the global apparel market and highlight the potential benefits of an India-EU free trade agreement, which could further enhance trade opportunities for Indian exporters.

India exported $14.5 billion worth of apparel in FY24. In the first quarter of FY25, India’s exports of readymade garments reached $3.9 billion, while Bangladesh’s exports stood at $9.7 billion.

India’s Apparel Exports to the World from 2022-23 to 2024-25

A prime example of this shift is Tiruppur, India’s knitwear export hub, which recently secured orders worth ₹450 crore from global brands. This influx of business can be directly linked to the political unrest in Bangladesh, which has made it challenging for manufacturers there to fulfill commitments. Brands like KiK from Germany, Zeeman from the Netherlands, and Pepco from Poland have turned to Tiruppur to meet their holiday season demands, placing substantial orders for kids’ wear, nightwear, and more.

The Bangladesh crisis’s ripple effect is also felt in other parts of India. Noida Apparel Export Cluster, for instance, has seen a 15% increase in orders from well-known brands like Zara. 

Impact of Bangladesh’s Crisis on Apparel Manufacturing

Bangladesh’s crisis, characterized by political instability, labor unrest, and supply chain disruptions, has severely impacted its apparel industry. Bangladesh’s challenges have sent shockwaves through the global apparel market as one of the largest exporters of ready-made garments.

• Political Instability: Bangladesh’s political turmoil has led to protests and strikes, which have disrupted apparel production and caused delays for global brands.
• Labor Unrest: Bangladesh’s apparel industry has faced ongoing labor issues, such as demands for higher wages and better conditions. The crisis has worsened these problems, leading to more strikes and factory shutdowns.
• Supply Chain Disruptions: The COVID-19 pandemic further strained Bangladesh’s apparel industry, causing supply chain disruptions. The ongoing crisis has compounded these challenges, making it difficult for manufacturers to meet international demand.

India’s Competitive Advantage in the Apparel Sector

India’s ability to capitalize on Bangladesh’s challenges can be attributed to several factors that provide the country with a competitive edge in the global apparel market.

• Established Textile Industry: India has a long-standing tradition of textile manufacturing, with a well-established infrastructure and a skilled workforce. This has enabled the country to ramp up production quickly to meet the demands of global brands.
• Diversified Product Range: Unlike Bangladesh, which primarily focuses on ready-made garments, India offers a diversified product range, including textiles, apparel, and accessories. This diversity has made India an attractive option for brands sourcing various products from a single location.
• Government Support: The Indian government has implemented several initiatives to support the textile and apparel industry. These include favorable policies, incentives for exporters, and investments in infrastructure development, all of which have strengthened India’s position in the global market.
• Cost-Effective Labor in India: India offers a more cost-effective alternative with its large pool of skilled labor. The availability of affordable labor and the country’s established manufacturing infrastructure make India an attractive destination for global apparel deals.

Strategic Location and Trade Agreements

India’s strategic location and its extensive network of trade agreements have further boosted its appeal as a global apparel manufacturing hub.

• Proximity to Major Markets: India’s geographic location offers easy access to major global markets, including Europe, the United States, and the Middle East. This proximity reduces shipping times and costs, making India a preferred choice for international brands.
• Trade Agreements: India has signed several bilateral and multilateral agreements facilitating easy access to global markets. These agreements reduce tariffs and trade barriers, making Indian apparel competitive globally.

India’s Growing Focus on Sustainability

Sustainability has become a critical consideration for global brands, and India’s focus on sustainable practices has further enhanced its appeal as a manufacturing hub.

• Eco-Friendly Manufacturing: Indian apparel manufacturers are increasingly adopting eco-friendly practices, such as using organic cotton, implementing water-saving technologies, and reducing carbon emissions. These initiatives align with the sustainability goals of many international brands.
• Government Initiatives: The Indian government has also introduced policies to promote sustainable manufacturing practices in the textile and apparel industry. These include incentives for adopting green technologies and support for research and development in sustainable textiles.

Resilient Supply Chain and Infrastructure

India’s resilient supply chain and robust infrastructure have been key factors in attracting global apparel deals amid the Bangladesh crisis.

• Integrated Supply Chain: India boasts an integrated supply chain that includes everything from raw material sourcing to finished product manufacturing. This integration allows for greater control over the production process and reduces reliance on external suppliers.
• Infrastructure Development: The Indian government has invested significantly in infrastructure development, including modernizing ports, enhancing transportation networks, and establishing industrial parks. These developments have improved the efficiency of India’s apparel manufacturing sector, making it a reliable alternative for global brands.

Increasing Demand for Indian Apparel Globally

As global brands shift their focus to India, there has been a noticeable increase in demand for Indian apparel in international markets.

• Quality and Craftsmanship: Indian apparel is renowned for its quality and craftsmanship. The country’s rich textile heritage, combined with modern manufacturing techniques, has resulted in products that meet the high standards of global consumers.
• Branding and Marketing: Indian apparel manufacturers increasingly invest in branding and marketing to promote their products in international markets. This has helped raise awareness of Indian apparel and drive demand among global consumers.

Challenges and Opportunities for India

While the influx of global apparel deals presents significant opportunities for India, it also comes with challenges that must be addressed.

• Capacity Constraints: The rapid increase in demand for Indian apparel may strain the country’s manufacturing capacity. To sustain this growth, India must continue investing in expanding its production capabilities and upgrading its infrastructure.
• Competition from Other Markets: India is not the only country benefiting from the Bangladesh crisis. Other apparel manufacturing hubs, such as Vietnam and Cambodia, are also vying for a global market share. India must differentiate itself by focusing on quality, sustainability, and innovation.

Conclusion

The ongoing crisis in Bangladesh has created a unique opportunity for India to assert itself as a global leader in the apparel industry. With its established textile industry, strategic location, and focus on sustainability, India is well-positioned to attract global apparel deals and meet the growing demand for quality products. 

However, to fully capitalize on this opportunity, India must continue to address its challenges, invest in capacity expansion, and maintain its competitive edge in an increasingly crowded market. As global brands continue to seek reliable and cost-effective manufacturing partners, India’s role in the global apparel market is set to grow even further.

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