As Bangladesh grapples with economic challenges and political unrest, India is set to gain in the international readymade garment (RMG) market. According to a report by CareEdge, India could receive monthly export orders worth USD 200-250 million in the short term, cashing in on the opportunity posed by the unrest in the second-largest exporter in the sector, Bangladesh.
The report stated that India failed to utilise the opportunity presented by the declining share of China in global RMG exports. At the same time, Bangladesh captured a significant portion of the global exports. According to the study, the present situation presents a golden chance to become a major player both in the short and long term.
In the first quarter of the current financial year, Bangladesh’s readymade garment exports declined by 17 per cent compared with the same period a year ago. India managed to register a four per cent growth in exports in the segment at the same time.
The report mentioned, “If the unrest in Bangladesh persists for an extended period, it could result in a significant shift in export orders towards India. India could gain monthly export orders worth USD 200-250 million in the short term and around USD 300-350 million in the medium term.”
As the brands on the global level strive to find reliable and efficient suppliers, the readymade garment manufacturers who operate on a large scale with operational efficiency and backward integration are set to be the biggest beneficiaries.
The report highlighted that as Bangladesh’s market share eroded in the first quarter, India narrowed down the ratio of RMG exports of Bangladesh to that of India to 2.5 times in Q1FY25 from 3.2 times in FY24.
Bangladesh exported readymade garments worth USD 9.7 billion in Q1FY25, while India’s exports were USD 3.9 billion.
