The current political unrest in Bangladesh has caused India’s garment exports to rise remarkably.Apparel exports from the country rose by 8.5 per cent in H1,FY25as against the 15 per cent decline during the same period last year. September was particularly robust, with apparel exports increasing by17.3 per cent Y-o-Y during the month.
Confirming the positive impact of the situation in Bangladesh on India’s garment exports, Sabu Jacob, Managing Director, Kitex Garments, the situation has positively impacted financial growth for Kitex Garments with the company reporting its highest-ever turnover and profit in Q2 FY25. The company’snet profit nearly tripled to Rs 39.94 crore during the quarter compared to Rs 13.21 crore in the same period last year.
Another Bengaluru-based exporter, Gokaldas Exportsalso identified the instability in Bangladesh as a long-term growth opportunity for the company. Buyers seeking alternatives outside China are increasingly turning to Asian suppliers like India with Bangladesh’s political issues, positioning the country as an attractive option, he noted.
Ajay Sahai, Director General and CEO, Federation of Indian Export Organisations (FIEO), confirms, to meet time-sensitive demand spurred by Bangladesh’s internal challenges, many global buyers are shifting orders to India.This shift is likely toresult in a sustained 10-20 per cent increase in annual apparel export orders for India, potentially adding $2-3 billion to the industry annually, benefiting established garment hubs across the country, he notes.
Ajay Srivastava, Founder, Global Trade Research Initiatives (GTRI), avers, international buyers may redirect 10 per cent -15 per cent of their orders from Bangladesh to India, potentially bringing an additional $300-400 million in monthly business to India. This shift positions India’s garment industry for sustained growth, as global demand increasingly pivots towards Indian manufacturers.
