India is usually a beneficiary within the worldwide readymade garment markets as Bangladesh, the world’s second-largest exporter within the sector, grapples with financial challenges, amid ongoing political unrest there, in accordance with a report launched on Thursday.
India may achieve month-to-month export orders value USD 200-250 million within the brief time period, a CareEdge examine stated.
Whereas Bangladesh has traditionally captured a good portion of China’s declining share in world readymade garment (RMG) exports, India has been unable to completely capitalise on the chance, it stated.
Nevertheless, the present state of affairs in Bangladesh presents a golden likelihood for the Indian RMG sector to increase its footprint each briefly and medium phrases, the report stated.
“If the unrest in Bangladesh persists for an prolonged interval, it may end in a major shift in export orders in the direction of India. Business estimates recommend India may achieve month-to-month export orders value USD 200-250 million within the brief time period and round USD 300-350 million within the medium time period,” the score company stated in its statement.
Massive-scale readymade garment producers with operational effectivity and backward integration are anticipated to be the most important winners as world manufacturers search dependable and environment friendly suppliers, the report stated.
Bangladesh’s readymade garment exports have already declined by 17 per cent within the first quarter of the present fiscal 12 months in comparison with the identical interval final 12 months, it claimed.
India, however, has registered a 4 per cent progress in such exports throughout the identical interval.
Bangladesh witnessed some market share erosion within the first quarter of the present fiscal, particularly because of the affect of socio-political disturbances and insufficient foreign exchange availability, the report stated.
This benefited India by “narrowing down the ratio of RMG exports of Bangladesh to that of India from round 3.2x in FY24 to 2.5x in Q1FY’25”, the report famous.
In Q1FY’25, Bangladesh’s readymade clothes exports had been USD 9.7 billion, whereas India’s exports had been USD 3.9 billion.
“The current price range announcement on skilling programmes and the potential Free Commerce Agreements with the UK and the EU will additional strengthen India’s place within the world RMG market,” stated Krunal Modi, Director at CareEdge Scores.
(Solely the headline and film of this report might have been reworked by the Enterprise Customary workers; the remainder of the content material is auto-generated from a syndicated feed.)
First Revealed: Aug 09 2024 | 2:41 AM IST
