India’s Garment Exports Expected to Rise 10-20% Amid Bangladesh Crisis

India’s largest garment export cluster, located in Tiruppur, Tamil Nadu, is anticipating around a 10 per cent rise in orders compared to the previous year.

India’s garment industry could experience a 10-20 per cent increase in export orders over the next 18 months due to the political turmoil in Bangladesh. In terms of value, India’s apparel exports might rise by $2-3 billion annually, with exports totalling $14.5 billion in the previous fiscal year.

While the domestic textile industry remains in a wait-and-watch mode, exporters have indicated that New Delhi should prepare for potential trade diversions resulting from the political unrest in Bangladesh, a major garment exporter. India is poised to benefit from garment exports, with an expected 10-15 per cent increase in the short to medium term. Additionally, many global brands are considering shifting their sourcing as Bangladesh approaches its 2027 graduation from least developed country status, which would increase the cost of garment exports from Bangladesh. India’s largest garment export cluster, located in Tiruppur, Tamil Nadu, is anticipating around a 10 per cent rise in orders compared to the previous year.

Experts indicated that cotton yarn and fabric exports are likely to benefit more than synthetic and manmade fibres. They projected a 10-20 per cent increase in orders coming to India over the next two years, particularly as Bangladesh loses its least developed country (LDC) status in 2027. A representative from the cotton textile industry suggested that this is a prime opportunity to activate the PM Mega Integrated Textile Region and Apparel (PM MITRA) scheme, which aims to establish seven mega textile parks in India.

Mithileshwar Thakur, Secretary General of the Apparel Export Promotion Council (AEPC), remarked that India does not intend to exploit the difficult situation in its neighbouring country. He emphasised that the Indian garment industry is working diligently to grow ready-made garment (RMG) exports based on its own merits. However, he acknowledged that it is quite possible that garment orders could shift to India in the short term to fill the gap caused by the disruption in Bangladesh. The representative from the cotton textile industry added that if factories in Bangladesh do not resume operations within the next 5-6 days, there might be a need to fulfill Diwali and Christmas supplies from India. He stressed that India must be prepared for this “Bangladesh plus one” strategy, as global buyers are likely to consider it.