https://sputniknews.in/20240808/bangladeshi-turmoil-may-give-indias-rmg-exports-250m-monthly-boost-7982945.html
Bangladeshi Turmoil May Give India’s RMG Exports $250M Monthly Boost
Bangladeshi Turmoil May Give India’s RMG Exports $250M Monthly Boost
Sputnik India
Bangladesh’s socio-political upheaval could push global RMG brands and retailers to diversify their sourcing strategies, particularly if the situation drags on... 08.08.2024, Sputnik India
2024-08-08T18:34+0530
2024-08-08T18:34+0530
2024-08-09T12:03+0530
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Approximately 10% of Bangladesh's ready-made garment (RMG) exports might be redirected if the country continues to experience political and social turbulence, a Thursday report by CareEdge Ratings, a knowledge-based analytical group revealed.This shift could open up export opportunities valued at $200-250 million per month for India's RMG industry in the short term, with potential growth to $300-350 million in the medium term.The potential shift has a historical precedent: after a decline in China's global ready-made garment (RMG) export share beginning in 2015, countries such as Bangladesh and Vietnam captured a significant portion of the market.India is poised to benefit from this transition, potentially capturing 6-8% of Bangladesh's monthly export orders in the near term and about 10% in the medium term, the statement noted.The report further emphasised that given its current capacities, India could boost its RMG exports by 20-25%.Meanwhile, India's exports of ready-made garments increased in FY22 and FY23 following a decline during the pandemic, according to data from the commerce ministry.Bangladesh's ready-made garment (RMG) exports in FY24 were 3.2 times greater than those of India, based on figures from the Bangladesh Garment Manufacturers and Exporters Association.However, this disparity decreased to about 2.5 times in Q1FY25, suggesting that India was capturing a greater market share at the expense of Bangladesh.The CareEdge report stressed that this transition was not only due to the socio-political upheaval in Bangladesh but was also buttressed by various initiatives aimed at bolstering the competitiveness of India’s RMG exports.
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bangladesh's ready-made garment (rmg) exports, political and social turmoil, careedge ratings, india's rmg industry, china's global rmg export, bangladesh, vietnam, market, global rmg brands, retailers, india, india's ready-made garment export, commerce ministry, global brands and retailers, europe, us., bangladesh's ready-made garment (rmg) exports, bangladesh garment manufacturers and exporters association, indian rmg exports, indian companies, shahi exports, gokaldas exports, scm garments, richa global, kpr mill, eastman exports global clothing, and richaco exports.
Bangladeshi Turmoil May Give India’s RMG Exports $250M Monthly Boost
18:34 08.08.2024 (Updated: 12:03 09.08.2024) Bangladesh’s socio-political upheaval could push global RMG brands and retailers to diversify their sourcing strategies, particularly if the situation drags on beyond the business quarter, according to a report by CareEdge Ratings.
Approximately 10% of Bangladesh's ready-made garment (RMG) exports might be redirected if the country continues to experience political and social turbulence, a Thursday report by CareEdge Ratings, a knowledge-based analytical group revealed.
This shift could open up export opportunities valued at $200-250 million per month for India's RMG industry in the short term, with potential growth to $300-350 million in the medium term.
The potential shift has a historical precedent: after a decline in China's global ready-made garment (RMG) export share beginning in 2015, countries such as Bangladesh and Vietnam captured a significant portion of the market.
"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," the report stated.
India is poised to benefit from this transition, potentially capturing 6-8% of Bangladesh's monthly export orders in the near term and about 10% in the medium term, the statement noted.
The report further emphasised that given its current capacities, India could boost its
RMG exports by 20-25%.
Meanwhile, India's exports of
ready-made garments increased in FY22 and FY23 following a decline during the pandemic, according to data from the commerce ministry.
However, these exports fell in FY24 as global brands and retailers reduced excess inventories and postponed orders due to high inflation and rising interest rates in Europe and the US.
Bangladesh's ready-made garment (RMG) exports in FY24 were 3.2 times greater than those of India, based on figures from the Bangladesh Garment Manufacturers and Exporters Association.
However, this disparity decreased to about 2.5 times in Q1FY25, suggesting that India was capturing a
greater market share at the expense of Bangladesh.
The CareEdge report stressed that this transition was not only due to the socio-political upheaval in Bangladesh but was also buttressed by various initiatives aimed at bolstering the competitiveness of India’s RMG exports.
Major Indian companies involved in the export of ready-made garment include Shahi Exports, Gokaldas Exports, SCM Garments, Richa Global, KPR Mill, Eastman Exports Global Clothing, and Richaco Exports.
