Bangladesh’s ongoing political crisis has significantly impacted its textile industry, creating a notable opportunity for Indian textile players. A recent report by Primus Research highlights that if 10-11 percent of Bangladesh’s textile business shifts to India, it could potentially translate into an additional USD 300-400 million in monthly revenue for Indian textile companies.

The textile sector in Bangladesh, which contributes 80 percent of the country's exports and 15 percent to its GDP, has been a powerhouse, particularly in the ready-made garments (RMG) segment. However, recent disruptions, including supply chain interruptions, curfews, and an internet blackout, have severely affected the industry.

These challenges are anticipated to cause a 15-20 percent decline in RMG exports from Bangladesh, raising concerns among global buyers and leading to market shortages and heightened uncertainty. Bangladesh's monthly apparel exports, valued between USD 3.5-3.8 billion, hold a significant share in key markets such as the European Union, the United Kingdom, and the United States. In contrast, India’s current monthly textile exports range from USD 1.3-1.5 billion.

This crisis presents a strategic opportunity for India to capture a larger portion of the global textile market. To fully leverage this potential, India must take a proactive approach. Essential steps include modernizing textile manufacturing facilities, enhancing logistics, and ensuring a reliable supply of raw materials. Strengthening policy support through incentives for domestic and foreign investors, streamlining regulatory processes, and reducing bureaucratic hurdles will create a more favorable environment for the Indian textile industry.

Several Indian companies with operations in Bangladesh are considering relocating their activities back to India. Textile hubs in India, such as Tirupur, known for their robust manufacturing infrastructure, are already experiencing a surge in orders.

The stocks of Indian textile manufacturers have risen by over 10 percent, driven by expectations of increased market share. Additionally, securing favorable trade agreements with key markets in the UK and EU will be crucial for expanding market access.

By focusing on innovation and expanding its global reach, India has the opportunity to reaffirm its position as a leading player in the global textile industry. Indian textile companies stand to gain a significant share of the diverted orders, thereby strengthening their international presence.