Bangladesh Crisis Benefits India: India’s Textile Companies See Increased Share in Exports
The political crisis in Bangladesh is proving to be a boon for India’s textile companies, as their share in exports to the United States and the United Kingdom has significantly increased.
Bangladesh Crisis: The ongoing political turmoil in Bangladesh is turning out to be a blessing for Indian textile companies. Bangladesh had a strong hold in the global textile supply chain, but it is now facing logistical challenges along with political upheavals. As a result, Indian textile companies are seeing a resurgence in business. India’s share in textile exports to the United States and the United Kingdom has witnessed a sharp rise.
India’s Increased Share in Exports to the US and UK
Brokerage firm JM Financial has released a report on India’s textile sector, indicating that demand could rise significantly in the second quarter of the current fiscal year. India’s market share in textile exports to the US and UK has grown in 2024 compared to 2023. In 2023, India’s share in textile exports to the United States was 6%, but it has increased to 7% in 2024. Similarly, India’s share in textile exports to the UK increased from 5% in 2023 to 6% in 2024.
Bangladesh Crisis Becomes a Blessing
The report from JM Financial highlights that significant changes are occurring in the global textile sector, with India emerging as a strategic alternative for international retailers due to the ongoing turmoil in Bangladesh. According to the report, challenges in emerging textile hubs have created a fantastic opportunity for India’s textile export companies.
Good Times Return for India’s Textile Companies
The report further explains that Bangladesh, historically a giant in textile exports, is experiencing significant internal tensions. Additionally, the high cost of factors in Vietnam will benefit Indian garment export companies. As China’s share in global textile exports declines, India is reaping the benefits. Rising labor costs and the China+1 policy are proving to be advantageous. Companies like Gokaldas Exports and Indocounts have stated that they expect to benefit from the improving market conditions in the second half of 2024.
