India’s Textile Industry Set to Grow as Bangladesh Faces Challenges
Industry experts predict that if 10-11% of Bangladesh’s exports shift to India, it could mean an extra USD 300-400 million monthly for Indian textile players, according to a Primus research report.
Bangladesh’s Textile Sector
Bangladesh’s textile sector, which makes up 80% of its exports and contributes 15% to its GDP, is facing severe disruptions. Issues like supply chain problems, curfews, and an internet blackout are expected to cause a 15-20% decline in ready-made garment (RMG) exports from January to March 2024.
Opportunities for India
This crisis opens opportunities for India to capture a larger share of the global textile market. To do so, India needs to modernize its textile manufacturing facilities, improve logistics, and ensure a steady supply of raw materials. Policy support, such as incentives for investors and streamlined regulatory processes, will also be crucial.
Indian Companies and Market Impact
Several Indian companies operating in Bangladesh are considering relocating their operations back to India. Textile hubs like Tirupur are already seeing a surge in orders. The stocks of Indian textile manufacturers have risen by over 10%, driven by expectations of gaining a more significant market share.
Future Prospects
Securing favorable trade agreements 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.
Doubts Revealed
Textile Industry -: The textile industry is where people make cloth and clothes. It includes making fabric, dyeing it, and turning it into clothes.
Bangladesh -: Bangladesh is a country next to India. It is known for making a lot of clothes that are sold all over the world.
Exports -: Exports are goods that a country sells to other countries. For example, when Bangladesh sells clothes to other countries, those clothes are called exports.
USD 300-400 million -: USD stands for United States Dollar, which is a type of money. 300-400 million means 300 to 400 million dollars, which is a lot of money.
Supply Chain Issues -: Supply chain issues mean problems in getting the materials needed to make products. For example, if a factory can’t get enough cloth, it can’t make clothes.
Curfews -: Curfews are rules that say people must stay inside their homes during certain hours, usually at night. This can make it hard for workers to go to factories.
Market Share -: Market share is the percentage of sales a company or country has in a market. If India gets more orders, its market share in textiles will grow.
Tirupur -: Tirupur is a city in Tamil Nadu, India. It is famous for making a lot of clothes, especially T-shirts.
Stocks -: Stocks are shares of a company that people can buy. If the company does well, the value of the stocks goes up, and people can make money.
