When we compare the export figures of Bangladesh with India, we would notice that there is a huge gap between the exports of readymade garment products from Bangladesh & India
Dwijendra Kumar
Have we erred by taking Bangladesh lightly in terms of its capacity to manufacture and export textile items and thus giving a sound blow to our export earning capabilities? Over 2 decades ago, when I was working with a textile magazine, I was wary of this ‘sympathy’ factor that was drifting export orders from India to Bangladesh. Many importers based overseas were outrightly rejecting Indian exporters’ overtures aimed at bagging purchase orders on the plea that many Indian companies do not comply with international labour laws etc offering congenial working atmospheres and preferring lesser compatible countries on those counts, such as Bangladesh, which they thought were poor and needed their assistance.
In the last few years, Bangladesh has witnessed rapid growth in the development of its infrastructure needed for the textile and readymade garment industry, making it to the top of the list of countries with high export volumes. It is now second largest exporter of readymade garments after China.
When we compare the export figures of Bangladesh with India, we would notice that there is a huge gap between the exports of readymade garment products from Bangladesh and India. Until two years ago, Bangladesh was estimated to be exporting readymade garments to the tune of 32 billion dollars, while India was lagging far behind with the figures that were estimated to be half of it. According to estimates, during the financial year 22-23, India exported readymade garments worth approx. 16 billion dollars, while Bangladesh was quite ahead with the figures of 47 billion dollars achieved during the same period.
However, as per estimates, this gap in exports between the two countries seems to be reducing if one takes into account the figures of the first quarter of the financial year 2024-25. From a 3-times lead over India, Bangladesh’s lead has reduced to around 2.5 times.
The reason being the political upheavals in Bangladesh causing strikes, bandhs and incidents of violence leading to overthrow of a government with a massive mandate. The country is yet to go for fresh elections, and till a government that gives confidence to the importers about its stability and peace in the country is formed, major international brands would like to purchase from India, their immediate neighbour. That many exporters from India had set up manufacturing bases in Bangladesh and are now shifting the same to India would further give much need confidence to the importers about the capacity of the Indian textile industry to meet their urgent demands.
According to media reports, exporters based in Tirupur in Tamil Nadu, have in the last few weeks received orders worth over 400 crore. It is believed that these are urgent orders diverted from Bangladesh to India. The Noida Apparel Export Cluster has also witnessed an increase of approx. 15% when compared to figures from the last year of the corresponding period.
No wonder then; unfortunate circumstances in Bangladesh have given India an edge over its competitor Bangladesh, and the Indian textile industry, including the readymade garment sector, has got a shot in the arm. India has already set the target of being the third-largest economy in the world. The Indian textile industry would have a major contribution if it so happens. It augurs well for the employment scenario of the country, as textile industry is labour intensive and more production would generate plenty of job opportunities.
(Dwijendra Kumar is a Mass Communication Professional who writes on fashion, lifestyle & communication. He has also authored books on fashion design & textiles. Views are personal)
