The global textile industry is going through a huge transition as the buyers shift away from Bangladesh and China. India has now become a significant hub for this industry. The exports of India have registered substantial growth.
Apparel exports grew by 11.3% in May, according to the industry association CITI. Western buyers also now view India as an increasingly reliable partner compared to Bangladesh and China. This has given a boost to India’s apparel exports.
Political instability began in Bangladesh in August last year following a change of government under Sheikh Hasina. This was the reason for India apparel exports surge. As per The Economic Times, clothing exports jumped 17.3% in September and 24.35% in October. A number of buyers from developed countries are requesting Indian suppliers to increase their capacity and obtain required certifications. Once the Trump administration imposed tariffs on China also benefited India by gaining the duty edge over Chinese imports.
This India apparel exports surge is good news for the textile sector, which was in distress for two years post-COVID-19 pandemic. The political struggle in Bangladesh resulted in a change in the supply chains of the world. Industry players opine that buyers prefer stability and consistency in the supply chain and are hesitant to take any risk of uncertainty.
Although Bangladeshi manufacturers are in high capacity and can fulfill large orders in short periods, Indian manufacturers are optimistic about maintaining their export growth, driven by duty advantages over China.
India has a $10 billion stake in the U.S. apparel industry compared to that of China, with $30 billion. While exports of apparel are on the upswing, raw cotton imports too are on the rise, as prices in the domestic market are higher than global rates.
The Cotton Association of India estimates that cotton imports will more than double in 2024-25, reaching 3.3 million bales (170 kilograms each) compared to 1.52 million bales last year.
Pakistan’s exports were much lower than India’s, as per media reports. In fiscal year 2024-25, Pakistan’s exports were $24 billion.
