India’s Apparel Exports to US, Europe Grow as Bangladesh Remains Weak
CHENNAI: As the uncertainties in Bangladesh apparel industry continue, India has become an alternative destination for global brands as is evident from the exports to the US and Europe. Indian apparel exports to the US, which was down by 20 per cent in FY24 is up by 7 per cent in the current fiscal and the decline in the exports to the European market has been arrested.
Indian apparel exports to the US had degrown by 19.6 per cent to $4.7 billion in FY2024 due to inflationary pressures and tepid economic growth in the key international markets. However, exports to the US increased by 7.6 per cent during 4M FY2025.
Similarly, apparel exports to the EU had declined by 11.8 per cent to $4.5 billion in FY24 and in the first four months of FY25, it has remained flat.
Meanwhile, Bangladesh’s apparel exports to the United States fell 10.97 per cent to $3.40 billion in January-June 2024, owing to the political uncertainties and the gas shortage in the industrial sector.
“The growth of Indian exports to the US market is mainly driven by the decline in the shipments from Bangladesh and improvement in the demand in the market. Textile exports between April and August recorded 3.8 per cent growth and this was mainly due to apparels,” said Chandrima Chatterjee, secretary general of Confederation of Indian Textile Industry. Indian apparel exports had declined by 10 per cent to $14.5 billion in FY2024 in line with the contraction in global trade.
However, exports of yarn and fabrics to Bangladesh are down owing to the crippled demand from the industry. Overall exports of these products were down by 9 per cent in August. “The mills are working with 20-25 per cent idle capacity due to lesser demand. In the case of yarn, there are also supply-side issues related to the cotton prices,” she said.
However, she expects that combined textile and apparel exports will be better than last year.