- India’s RMG Exports Surge by 12% as Global Sourcing Shifts
- AEPC Chairman Highlights Opportunities for the Indian Garment Sector
- Political Turmoil in Bangladesh Impacts RMG Exports, India Stands to Benefit
Bangladesh is suffering from growing political turmoil and Indian garment manufacturers are getting small early gains as it affects its trade with India. It is one of the key players in the global market for ready-made garments and has suffered at the hands of the domestic crisis, leaving open opportunities for Indian exporters, reports The Load Star.
Surge in India’s RMG Exports
India’s RMG exports increased by 12% to the same month last year in August. And this is the highest month-to-month increase so far in the current fiscal year that began in April. “Global brands are gaining a lot of confidence in India-made products,” says AEPC chairman Sudhir Sekhri.
“While the global garment sourcing [sector] is realigning, we are ready to play a significant role,” said Sudhir Sekhri, chairman of India’s Apparel Export Promotion Council (AEPC).
Shifting Global Sourcing Patterns
India is readjusting itself as a leading player in the global sourcing sector in readjustment. According to Sekhri, more governmental support is required to push Indian exports further with the existing buyers who are now considering alternatives owing to various geopolitical shifts with traditional sources.
“There is a need for the right push and support from the government, especially when the world is looking for options to switch its sourcing from conventional destinations, due to the changing geopolitical considerations,” Mr Sekhri added.
Impact of Political Unrest on Bangladesh’s RMG Exports
Bangladesh’s export trade, primarily dependent on RMG, has slowed down with the start of political turmoil. The business circles in Bangladesh have been the worst affected since there have been fewer containers passing through Chittagong Port in the last two months. In September, the port recorded a slump in containerized exports to 75,603 TEU compared to 78,146 TEU in August.
“The unrest has had a crippling effect on the Bangladesh RMG industry,” a shipping analyst in Dhaka told The Load Star. “Violent protests by workers have forced the closure of large swathes of production for months. It will take time to recover.”
India’s Strategy on New Markets
As Bangladesh struggles with massive challenges, India’s garment export players look for every possible shift in trade. One insurmountable challenge remains: India does not have free-duty access to their major markets. However, backed by the government, AEPC and other representative bodies have aggressively targeted new markets.
Industry data points to strong growth in RMG exports from India during the first quarter of the fiscal, not only to Bangladesh’s traditional market destinations like Japan, Korea, Australia, Mauritius and Norway but also to other destinations. That would be a balm for India’s overall merchandise exports, which had declined by 9% year-on-year.
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Source: The LoadStar
