The Great Apparel Migration: India Becomes New Sourcing Hub

India’s apparel manufacturing industry is witnessing a significant upswing as global buyers begin shifting their sourcing strategies from Bangladesh to India. This redirection is largely driven by political instability in Bangladesh, prompting international brands to seek more stable and reliable alternatives.

Sabu Jacob, Managing Director of Kitex Garments, told BusinessLine that around 80% of Bangladesh’s apparel exports have traditionally served the European market, taking advantage of duty-free concessions. However, India’s recent Free Trade Agreement (FTA) with the UK—and the potential for similar duty-free access to the European Union—is opening up new avenues for Indian manufacturers to expand their market share in Europe.

In addition, India’s favorable trade arrangements with the United States, offering zero or minimal tariffs, further enhance the country’s competitiveness on the global stage. Jacob noted that the Indian government sees the apparel sector as a key driver of employment, underscoring the strategic significance of this shift in global sourcing patterns.

With these developments, India’s apparel industry is well-positioned for sustained growth, greater export potential, and increased global influence.

News by Rahul Yelligetti.