In the wake of Bangladesh’s political crisis, inquiries from major global brands such as Tesco, Decathlon, J.C. Penney, GAP and Walmart have begun to increase for Indian apparel exporters, which could start to increase in early 2025. Industry insiders said that there is a possibility that
But to gain market share and seize the opportunities arising from supply chain reorientation due to Bangladesh’s challenges and US President-elect Donald Trump’s threat of tariffs on China, governments will need to intervene with appropriate support. , said Mithileshwar Thakur, Secretary General, Apparel Export Promotion. Council conveyed business lines.
“Supports sought by the industry include the urgent introduction of the PLI 2.0 scheme with lower investment thresholds for all types of clothing, regardless of textiles, the reinstatement of the technology upgrading scheme for small and medium-scale industries, and the It includes the continuation of the interest equalization scheme and the continuation of the interest equalization scheme for exporters. Flexibility and further concessions on import of fabrics and machinery to the textile sector,” Thakur said.
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After nearly two years of stagnation, India’s apparel and textile exports are undergoing an ongoing fiscal turnaround on the back of favorable factors such as increased demand from key markets and reduced global inventories. , it seems to be the right time to promote some kind of policy. , and relatively low raw material prices, industry groups claim.
Exports increase
According to figures compiled by the Confederation of Indian Textile Industries, apparel exports from India from April to November 2024 increased by 11.39% year-on-year to $9.85 billion, while textile exports increased by 3.9% to $13.47 billion. It was (CITI). Growth in exports of both clothing and textile products exceeded the overall growth rate of 2.17% for all goods during this period.
“Bangladesh’s crisis has led to renewed inquiries from brands such as Primark, Tesco, Decathlon, Dunn’s, Kick Clothing, J.C. Penney, GAP and Walmart, especially for exporters in Tirupur cluster countries. Paving the way. Conversion of orders is expected to be delivered in early 2025…India must act quickly to strengthen production capacity, reduce production cycle times and maintain export competitiveness and efficiency. Yes,” Thakur said.
Distinctive cost advantages such as low wage rates, duty-free access and LDC status offer Bangladesh, with most European brands exporting garments worth $47 billion in 2023, second only to China and the EU. This leads to the challenge of immediate migration. Thakur said they are accepting orders for other destinations. Meanwhile, India ranks 6th in clothing exports, accounting for about one-third of Bangladesh’s share in FY23.
However, several well-known European brands have reportedly decided not to further increase their sourcing to Bangladesh, citing political instability and the country’s currency crisis, which hampers fabric imports, Thakur said. Ta.
“With its focus on improving infrastructure, strengthening capabilities and focusing on technology, India is well-positioned to attract these reoriented investments,” he added.
The textile industry will emerge as a prominent player in the global textile ecosystem with the mega textile event ‘BharatTex 2025’ which will bring together global brands, retail chains and potential investors next month, AEPC officials said. We hope that the country’s position will be further strengthened,” said an AEPC official. Said.
