India Poised to Capitalize on Bangladesh's RMG Sector Woes

India can gain significantly in the global readymade garment market due to economic and political issues in Bangladesh. The ongoing unrest in Bangladesh could shift export orders worth USD 200-250 million per month to India in the short term, with potential increases in the medium term.

India is set to emerge as a key player in the global readymade garment (RMG) market, capitalizing on economic and political turmoil in Bangladesh, the world's second-largest RMG exporter, according to a report published on Thursday.

The report by CareEdge highlights that India could secure monthly export orders valued between USD 200-250 million in the short term. Bangladesh has typically benefited from China's shrinking global RMG market share, but India has yet to fully exploit this opportunity. The current crisis in Bangladesh presents a significant opening for India to expand its market share.

The ongoing unrest in Bangladesh could lead to a dramatic shift in export orders to India, with potential gains of USD 300-350 million in the medium term, according to industry experts. Major RMG manufacturers with efficient operations and backward integration stand to gain the most as global brands look for reliable suppliers. Bangladesh's RMG exports fell by 17% in the first quarter of this fiscal year, while India's grew by 4% during the same period, offering a stark contrast in market dynamics.