Bangladesh garments gaining foothold in India as exports rise in 2023

22 Sep '23

2 min read

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Insights

Bangladesh is gaining a stronger foothold in the Indian market, with garment exports increasing by 15.16 per cent to $264.917 million in January-May 2023.
The upward trend in exports from Bangladesh to India has been consistent since 2020.
The Indian textile sector is also grappling with global challenges such as high inflation and economic instability.

While India and Bangladesh are significant garment exporters and usually rivals in the global market, Bangladesh has been making inroads into the Indian textile sector. Exports from Bangladesh to India rose by 15.16 per cent to $264.917 million in the first five months of this year, putting pressure on the Indian textile industry, which is already grappling with slower demand across its value chain.

According to trade data from Fibre2Fashion's market insight tool TexPro, the shipment trend has been upward since 2020. Exports surged from $103.879 million in January-May 2020 to $148.290 million in January-May 2021, an increase of 42.75 per cent. In the same period in 2022, it further escalated to $230.035 million, marking a 55.12 per cent increase.

During 2022, Bangladesh had exported apparel worth $43.475 billion, out of which it’s shipment to India valued at $710.876 million which was 1.64 per cent of the total. India was ranked at 15^th in terms of largest garment markets for the neighbouring country, as per TexPro.

Both major garments exporting nations are dealing with reduced demand due to economic instability and high inflation rates in developed countries. The Indian textile sector is no exception to these global trends. The rise in garment supplies from Bangladesh is exacerbating issues for India's textile sector, as industry stakeholders report slower demand for yarn and fabric, partly because of the influx of readymade garments from neighbouring countries, particularly Bangladesh.

Fibre2Fashion News Desk (KUL)

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This according to Fibre2Fashion's Market Intelligence Tool - TexPro