New Delhi [India], August 26 : Industry experts predict that if even 10-11 per cent of Bangladesh's exports are diverted to India, it could translate into an additional USD 300-400 million in monthly business for Indian textile players, according to Primus research report.
India's textile industry is on the brink of expansion as neighbouring Bangladesh, a dominant player in the global textile market, faces severe disruptions. Bangladesh's textile sector accounts for 80 per cent of its exports and contributes 15 per cent to its GDP, has been a powerhouse, especially in the ready-made garments (RMG) sector.
However, recent challenges, including supply chain disruptions, curfews, and an internet blackout, have dealt a heavy blow to the industry.
These setbacks are expected to result in a 15-20 per cent decline in RMG exports from Bangladesh for the January to March 2024 season. The disruption has caused widespread concern among global buyers, leading to market shortages and increased uncertainty. This crisis has opened a window of opportunity for India, which is now poised to capture a more substantial share of the global textile market.
To fully capitalize on this emerging situation, India must adopt a strategic and proactive approach. Strengthening infrastructure, such as modernizing textile manufacturing facilities, improving logistics, and ensuring a steady supply of raw materials, will be crucial to meet the anticipated increase in demand.
Additionally, enhancing policy support by offering incentives for domestic and foreign investors, streamlining regulatory processes, and reducing bureaucratic hurdles will create a more favourable environment for the textile industry to thrive.
Several Indian companies operating in Bangladesh are considering relocating their operations back to India. Textile hubs in India, like Tirupur, which are known for their robust manufacturing infrastructure, are already seeing a surge in orders.
The stocks of Indian textile manufacturers have risen by over 10 per cent, driven by expectations of gaining a more significant market share.
Furthermore, securing favourable trade agreements, particularly with key markets in the UK and EU, will be essential for expanding market access. By focusing on innovation and expanding its reach, India can reclaim its position as a global leader in the textile industry.
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