Indian apparel industry benefiting from disruptions in China and Bangladesh

India-UAE bilateral trade is on track to reach $100 billion mark by 2030 due to the Comprehensive Economic Partnership Agreement (Cepa), a top Indian diplomat said. Foreign buyers are thinking about shifting 10 percent to 15 percent of their orders to India due to disruptive environment in other major garments exporting countries such as Bangladesh, China and Sri Lanka, officials said.

“Bilateral trade between India and the UAE is growing fast due to Cepa and has jumped from $69 billion in 2022 – when both the countries signed Cepa – to $85 billion this year and is poised to cross the $100 billion mark before 2030,” Satish Kumar Sivan, Consul General of India to the UAE, said while inaugurating the 2nd Brands of India Exhibition at the Dubai World Trade Centre on Tuesday. “With Indian economy growing at a fast pace, our exporters should take advantage of the Cepa and the competitive business environment in the UAE and use the UAE as a gateway to expand exports to other countries in the region.

“Brands of India is a strategic platform designed for Indian apparel manufacturers to further leverage on the India-UAE Cepa, enabling duty-free apparel imports. With the disruptive environment at other global apparel manufacturing hubs like Bangladesh, Sri Lanka, and China, the show offers a good opportunity to attract global buyers to discover the various advantages of sourcing from India. And, Dubai serves as an ideal gateway to reach out to the world.”

China, Bangladesh, Vietnam, India, Hong Kong, Turkey, Germany, Mexico, Italy, and Indonesia are the biggest exporters of clothing worldwide. Bangladesh is the world’s second largest readymade garments exporter after China. Bangladesh’s garment exports reached $46.99 billion in FY 2022-23, with a 10.27 per cent year-on-year growth. Apparel accounts for 84.58 per cent of the country’s total exports.

The recent unrest in the readymade garments industry in Bangladesh resulted in severe clashes between workers and law enforcing agencies that resulted in closure of hundreds of factories. This has negatively affected garments export – and provide livelihood to more than four million people.

“The global apparel industry stands as a pivotal pillar of international commerce, encompassing a diverse spectrum of products ranging from garments and textiles to accessories. Over the recent years, this sector has exhibited robust growth, with projections indicating a rise from $655.7 billion in 2023 to $703.11 billion in 2024, reflecting a compound annual growth rate (CAGR) of 7.2 per cent. Looking further ahead, the market is anticipated to reach $918.71 billion by 2028, growing at a CAGR of 6.9 per cent,” according to an industry report.

Brands of India exhibition is organised by the Clothing Manufacturers Association of India (CMAI), that represents the apparel and textile industry in India. With 5,000 members and serving more than 25,000 retailers across India, its membership consists of manufacturers, exporters, brands, and ancillary industry.

Apparel exports from India to UAE was $462.3 million during the period April to August 2024 and expected to grow considering the ensuing Ramadan Eid, according to Santosh Katariya, President, CMAI.

CMAI has promoted the show extensively and invited overseas buyers from more than 60 countries and also extended exclusive privileges like hotel accommodation, F&B and business matching services. Amidst buoyant sourcing sentiments, leading Retailers and Chain Stores from Middle East like Lulu Group, Landmark Group, Al Safeer Group, Brands Group, R&B, BMA Group including Retailers and Boutique stores are the key buyers to visit the show. Moreover, hundreds of on the spot buyers are also expected to visit during the three days.