The recent civil unrest in Bangladesh has sent shockwaves through the global apparel industry. With buyers pulling out orders and seeking alternative production hubs, India stands to benefit. However, challenges persist.
According to Apparel Export Promotion Council (AEPC) Chairman, Shri Sudhir Sekhri, the immediate impact of the situation in Bangladesh is a surge in demand for short-delivery orders. While this presents an opportunity for Indian manufacturers, the current import policies pose a significant hurdle. The availability of man-made fabrics, primarily sourced from China, Korea, and Europe, is crucial for fulfilling these orders. India’s import restrictions on these fabrics are hindering the industry’s ability to capitalize on the situation fully.
Looking ahead, Sekhri believes that buyers will diversify their supply chains to reduce dependence on a single country. Bangladesh’s capacity saturation was already a concern before the current crisis. India can position itself as a viable alternative, but it requires substantial capacity expansion.
A key challenge for India remains the import policy for man-made fabrics, trims, and accessories. Relaxing these restrictions is essential to attract more orders and compete effectively with other global apparel hubs.
While the situation in Bangladesh presents a promising opportunity for the Indian apparel industry, overcoming the existing challenges is crucial to fully harness its potential.
Key takeaways:
- Bangladesh unrest is driving buyers to seek alternative production locations.
- India can benefit from this shift but faces import policy hurdles.
- Capacity expansion is essential for Indian manufacturers to compete effectively.
- Relaxing import restrictions on man-made fabrics is crucial for the industry’s growth.
It may be an opportunity to Indian apparel garment industry but remain a challenges of skilled labours and support of state and central governments.
I hope this is biggest opportunity to stay on global market.
Yes, fingers crossed!