As the Bangladesh apparel industry faces ongoing challenges, India has emerged as a compelling alternative for global brands seeking reliable and competitive suppliers. This shift is evident in the country’s growing apparel exports to the United States and Europe.
Indian apparel exports to the US, which experienced a 20% decline in FY2024, have rebounded with a 7% increase in the current fiscal year. Similarly, the downward trend in exports to the European market has been halted.
The inflationary pressures and tepid economic growth in key international markets led to a 19.6% decrease in Indian apparel exports to the US in FY2024, reaching $4.7 billion. However, these exports have shown a positive turnaround, increasing by 7.6% during the first four months of FY2025.
Similarly, apparel exports to the EU declined by 11.8% to $4.5 billion in FY2024 but have stabilised in the initial four months of FY2025. Meanwhile, Bangladesh’s apparel exports to the United States have plummeted by nearly 11% in the first half of 2024, reaching $3.40 billion. This decline can be attributed to political instability and gas shortages in the country.
Chandrima Chatterjee, Secretary General of the Confederation of Indian Textile Industry, attributed the growth in Indian exports to the US market to the decline in shipments from Bangladesh and increased demand. Textile exports between April and August recorded a 3.8% growth, primarily driven by apparel exports.
The Indian apparel industry experienced a setback in FY2024, with exports falling by 10% to $14.5 billion. This decline can be attributed to the contraction of global trade, a trend that impacted various sectors worldwide. Despite this temporary setback, the industry maintains a positive outlook and is hopeful for future growth.
While exports of yarn and fabrics to Bangladesh have decreased due to reduced demand, overall exports of these products fell by 9% in August. Chatterjee noted that mills are operating at 20-25% idle capacity owing to lower demand and supply-side issues related to cotton prices.
Despite these challenges, the industry anticipates that combined textile and apparel exports will surpass last year’s figures, showcasing India’s growing prominence as a reliable and competitive source for global brands.
