New Delhi: India’s garment industry could reap a 10-20% boost in export orders over the next 18 months following the political turmoil in Bangladesh, said executives and industry bodies.In value terms, India’s apparel exports could surge by $2-3 billion annually. Exports stood at $14.5 billion last fiscal.The domestic textile industry is in a wait-and-watch mode, but exporters say New Delhi needs to be ready for a potential trade diversion triggered by the political unrest in the eastern neighbour, one of the world’s top garment exporters. “India can benefit from garment exports. We expect a 10-15% gain in the short to medium term on garment exports,” said Sanjay Jain, chairman, Indian Chamber of Commerce, National Expert Committee on Textiles. Many global brands are already mulling shifting their sourcing once Bangladesh graduates from its least developed country status by 2027 as it would garment exports from Bangladesh costlier. India’s biggest garment export cluster at Tiruppur in Tamil Nadu is expecting about a 10% rise in orders compared to last year. Cotton yarn and fabric exports could benefit more than synthetic and manmade fibres, experts said. “We expect 10-20% orders to come to India in the next two years, especially as Bangladesh loses its LDC status in 2027. We need to set up factories and expand production,” said a representative of the cotton textile industry, adding that it is an opportune time to operationalise the PM Mega Integrated Textile Region and Apparel (PM MITRA) scheme aimed at setting up seven mega textile parks in the country.Mithileshwar Thakur, secretary general of the Apparel Export Promotion Council (AEPC) said, “India has no intention or inclination to exploit this unfortunate situation in our friendly neighbouring country.” “The Indian garment industry is making serious efforts to grow RMG exports on its own, based on its merit,” he said.He, however, added that it is quite likely that in the short-term, garment orders may shift to India and the Indian apparel industry may be asked to meet the gap caused by this severe disruption. “Some diversion will happen and if factories in Bangladesh don’t open in the next 5-6 days, then Diwali and Christmas supplies will have to be met from here,” said the cotton textile industry representative cited above. The official added that India has to be ready for this Bangladesh plus one strategy as it will be factored in by buyers around the world. Sharad Kumar Saraf, founder chairman of Technocraft Industries India, a textile exporter, said garment exports from Bangladesh enjoy duty free access in the European Union, leaving India to compete solely on price.
Source link
Follow Us:
https://facebook.com/gagab2b
https://youtube.com/gagab2b
https://gagab2b.com
