“India is in a prime position to capitalise on the opportunity,” it said in a note.
Bangladesh occupied the second position with around 8.5% market share of global exports in 2023. Its share rose consistently during CY15-CY23 largely at the expense of China, which remains number one. India remains at 7th in terms of global readymade garment trade with a market share of around 3-4% during this period.
The socio-political uncertainties prevailing in Bangladesh may result in global RMG brands and retailers with a significant presence in Bangladesh diversifying their sourcing for meeting their delivery schedules, especially if the crisis persists for more than a quarter or two, it said.
It pointed out that India had enough headroom to increase ready made garment exports by 20-25% given the available capacities in the sector.
“With the China+1 sourcing strategy already in the works, global RMG brands and retailers have limited alternatives such as India, Vietnam and Cambodia to replace Bangladesh,” it said. India has its presence across the textile value chain from fibre to garment, unlike Bangladesh which is largely dependent on the import of yarn and fabric, the agency said.The agency highlighted that various government initiatives such as PM Mega Integrated Textile Region and Apparel (PM MITRA) park, Production Linked Incentive (PLI) scheme, and free trade agreements (FTAs) with key export markets, are designed to enhance textile exports.
“These factors collectively position India as a strong alternative for global brands seeking reliable garment supplies,” it said.
