The Indian textile and apparel sector is reaping financial benefits from the political turmoil in Bangladesh. Indian textile firms are getting billions of dollars in new orders from major western clients

Bangladesh is a major player in the apparel industry, with exports expected to soar 92% to $47 billion in 2023. After China and the European Union (EU), the nation was the third-largest exporter of clothing last year; the industry generates more than 80% of its overall export revenue. India ranks sixth in the world for garment exports, which are less than half as large.

Global purchasers are uneasy, nevertheless, given the political unrest in the nation last month that resulted in the ousted PM Sheikh Hasina fleeing to India. Seeking new prospects, these buyers have set up shop in India's textile marketplaces after years of docking in Bangladeshi centers such as Chittagong.

According to reports, hundreds of crores of rupees' worth of agreements have been made in the last few weeks in garment export centers like Tiruppur in Tamil Nadu, Ludhiana in Punjab, Surat in Gujarat, Jaipur in Rajasthan, and Noida in Uttar Pradesh. In an attempt to diversify their risks, businesses from Germany, the Netherlands, Poland, and Spain are putting their money on the line in Vietnam and India.

Indian clothing exporters such as Arvind Mills, KPR Mills, Jindal World Wide, Vardhman Textiles, Welspun Living, Raymond, Bombay Dyeing, Nitin Spinners, and Indo Count Industries stand to gain a great deal from this change.

"Raymond has been inundated with inquiries. According to Gautam Singhania, in an interview with Business Today, "we invested Rs 200 crore last year to increase our capacity, which has come online and is available for new orders. We offer across the board price-points and end-to-end fabric-to-garment-to export capabilities."

According to Singhania, India is in a unique position to gain from Bangladesh's predicament. Bangladesh lacks a supply of cloth. India has a fantastic chance to benefit from this, given we are home to the fabric base. They are limited to a clothing foundation," he continued.

Indian exporters typically receive orders in December or January for the spring and fall seasons, as well as in June or July for the Christmas and holiday season. The apparel company has benefited from the new, "unseasonal" demand. Global brands reportedly started ethical audits at a number of plants; if the firms pass international standards, orders may increase by 2025.

The recent events have also reignited calls for a speedier free trade deal between the EU and the US. A trade agreement might help Indian exporters at this delicate political moment, as Bangladesh has already reached one.

Bangladeshi customers abroad also have to overcome additional challenges. Up to 50% less clothing is being produced as a result of flooding in a number of places. Following the riots, India also cut off diesel supplies to Bangladesh, worsening the nation's power shortfall and negatively affecting manufacturing operations.