The hope is that India will eventually capture a share of Bangladesh’s market, though that is expected to take time.
Despite on-going wars, the Red Sea issue, and India’s lack of a significant presence in Bangladesh’s market, the country’s garment exports are on the rise. Exporters attribute this growth primarily to the depletion of stocks among buyers and the improvement of many global economies.
India’s garment exports reached a peak of $16.71 billion in 2017-18. During the period from April to October 2024, exports amounted to $8.7 billion, an 11.6 per cent increase compared to the same period last year, raising expectations that 2024-25 could surpass the 2017-18 record.
Achieving a record performance this year would have been more straightforward if India had the manufacturing capacity to handle the jobs that would have typically gone to Bangladesh, which is currently in a socio-political instability. India is still working to catch up with China and countries with Chinese investments like Vietnam and Indonesia. The hope is that India will eventually capture a share of Bangladesh’s market, though that is expected to take time.
In the current year, the strong growth is largely attributed to better demand from two major markets — the US, with an 11.5 per cent growth, and the UK, with a 7 per cent increase. There has also been an uptick in demand from smaller markets like the Netherlands (27 per cent) and Spain (18 per cent).
The April-October 2024 figure is actually 4.7 per cent lower than the same period in 2022-23, a strong year when exports hit $16.19 billion, largely due to post-Covid demand. However, the current year’s rising trend in exports is seen as more sustainable. N Thirukkumaran of ESSTEE Exports, who is also the General Secretary of the Tiruppur Exporters Association, mentioned that their capacity is already booked until March.
Sivaramakrishnan Ganapathi, V-C & MD of Gokaldas Exports, explained that after the pandemic, a sudden surge in demand, combined with a supply-demand mismatch between consuming and manufacturing hubs in Asia, led retailers to stock up on apparel. As demand tapered off and inflation peaked, retailers were left with high inventory levels and reduced apparel imports, which allowed existing stock to sell more naturally.