Surat’s garment sector to grow 20-25% as global brands shift from Bangladesh

Other textile hubs in Tamil Nadu, Punjab, and Noida stand to benefit from the shift in demand.

Many global and local brands that previously sourced garments from Bangladesh are now turning to Indian manufacturers to meet their demands, citing growing discomfort over the persistent instability in the neighbouring country.

According to textile industry insiders in Surat, there has been a noticeable increase in inquiries from such brands for the production and supply of ready-to-wear garments. These insiders believe that if these inquiries translate into confirmed orders, Surat’s garment sector could experience accelerated growth, potentially reaching 20-25 per cent annually, up from its current rate of 12 per cent. They also noted that other textile hubs in Tamil Nadu, Punjab, and Noida stand to benefit from the shift in demand.

Bangladesh, despite being the second-largest exporter of ready-made garments after China, heavily relies on fabric supplied by Surat, known as the textile city of India. Amid growing political instability, law-and-order concerns, and unrest among textile workers in Bangladesh, Indian companies view this as an opportunity to cater to global markets with more value-added products.

Ashish Gujarati, a former president of the South Gujarat Chamber of Commerce, explained that Surat’s garment sector primarily focuses on ethnic wear, kurtis, low-priced women’s wear, and some denim. He remarked that there had been a significant surge in inquiries from major brands since the instability in Bangladesh began, which could bring substantial benefits to Surat’s garment industry.

Surat’s monthly turnover currently stands at approximately Rs 6 billion, primarily from man-made fibre products. Gujarati pointed out that cotton hubs in Tiruppur and Coimbatore in Tamil Nadu, Ludhiana in Punjab, and Noida in Uttar Pradesh could also gain from these developments. However, he emphasised that sustained growth in garment manufacturing would require government support.

Bangladesh’s garment sector has been under considerable strain, with worker unrest escalating due to financial pressures. Key textile clusters in Bangladesh, located in Dhaka, Chittagong, Gazipur, Ashulia, Narayanganj, Khulna, Narsingdi, and Rajshahi, have reported varying degrees of unrest, with Dhaka and Chittagong facing severe disruptions.

In November, Swedwatch, a Swedish non-profit organization focusing on business practices in developing countries, released a critical report on the working conditions of garment workers in Bangladesh. The report urged European Union members to enforce stricter due diligence to safeguard workers’ rights. It also recommended that global brands sourcing from Bangladesh engage meaningfully with stakeholders, avoid blanket assurances from suppliers, and collaborate with trade unions to improve working conditions and ensure fair wages through targeted training programs and corrective action plans.