Advantage India! As West moves away from China & Bangladesh, India's apparel exports see big growth; $120 billion US market biggest opportunity

Buyers from developed countries are encouraging Indian manufacturers to increase production capacity. (AI image)
India is fast emerging as an alternate destination for reliable apparel sourcing for buyers in the West, as they move away from Bangladesh and China. India's garment exports maintained robust growth, showing an 11.3% year-on-year increase in May, according to data from the Confederation of Indian Textile Industry (CITI).
This export growth provides relief to India's apparel sector, which experienced two consecutive years of difficulties following the pandemic. In the US market, India's share stands at $10 billion, whilst China maintains a $30 billion share.
Buyers from developed countries are encouraging Indian manufacturers to increase production capacity and obtain necessary certifications. This push comes as India stands to benefit from duty advantages over China, resulting from reciprocal tariffs implemented during the Donald Trump administration.
Advantage India
The sector witnessed significant growth following political instability after Sheikh Hasina's government was removed in Bangladesh last August, according to an ET report. Export figures rose by 17.3% in September, followed by a 24.35% increase in October.
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"There was a fall in India's apparel exports after Covid, as consumers bought fewer newer clothes due to excess purchases made during the Covid period.
There was a period of stagnation or degrowth for about two years post Covid," said Sanjay K Jain, chairman, National Textile Committee, Indian Chamber of Commerce.
The apparel sector began showing signs of improvement after the political changes and unrest in Bangladesh. Industry experts noted that due to the continuous nature of apparel production, buyers seek stability in their supply chains.
Bangladesh's apparel sector has substantial manufacturing capabilities, enabling them to fulfil large orders quickly, which differs from Indian manufacturers.
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The export growth is expected to continue for Indian manufacturers due to duty advantages compared to China. "There is a big window of opportunity for Indian apparel exporters. The $120 billion US market is the biggest opportunity. All we need is to get the raw material at competitive rates," said Jain.
Whilst apparel exports continue to rise, raw cotton imports are increasing as domestic prices exceed international rates. The projected cotton imports for India in 2024-25 are set to more than double compared to the previous year.
The Cotton Association of India reports that the nation's cotton imports are expected to reach 3.3 million bales of 170 kilograms each in 2024-25, an increase from 1.52 million bales in the previous year.
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