India's Garment Sector Poised to Benefit from Bangladesh’s Political Unrest

The recent political turmoil and social unrest in Bangladesh offer significant opportunities for Indian garment manufacturers, a CareEdge Ratings report reveals. With Bangladesh's export orders potentially shifting due to instability, India could see an increase in monthly export opportunities, benefiting from various government initiatives and available capacities.

Recent political turmoil and social unrest in Bangladesh, the world's second-largest exporter of readymade garments, present a unique opportunity for Indian garment manufacturers, according to a report by CareEdge Ratings. Currently, China holds the top spot as the largest exporter in this sector.

Over the years, Bangladesh has captured a substantial share of the global readymade garment market, providing employment to millions. Many international clothing companies opted for Bangladesh due to its low labor costs and skilled workforce. However, this political instability could result in a significant shift in export orders to India.

According to CareEdge, India stands to gain roughly 10% of Bangladesh's export orders if the unrest continues, offering monthly export opportunities between USD 200-250 million in the near term and up to USD 350 million in the medium term. Despite China's dominance, the global readymade garment trade reached around USD 550 billion in 2023, with Bangladesh holding an 8.5% market share, while India lagged at 7th place with 3-4%.