Uttar Pradesh Chief Minister Yogi Adityanath recently questioned why India could not follow Bangladesh's example in the ready-made garment (RMG) industry, sparking controversies over India's ability to control global textile exports.
Bangladesh is a leader in the RMG sector for decades with $40 billion worth of exports every year, supplying 6-7% of the world market share. To put this into perspective, the exports of India's RMG industry are at $16-18 billion.
Bangladesh's garment industry is currently threatened by political instability, rising costs of production, and exchange rates. All these have led the export sector to decline, urging global brands to turn to Indian manufacturers as legitimate alternatives.
Indian exports are estimated to gain an additional $200-250 million of monthly export orders during the crisis in Bangladesh.
The country's strengths are product diversification, advanced manufacturing abilities, and growing focus on sustainability.
The tariff reductions and production-linked incentives under the latest government announcements are aimed at further stimulating the textile sector.
Nevertheless, negotiation of free trade agreements with big markets like the EU remains crucial for India to gain competitiveness.
Adityanath's words ring true in India's need to seize this opportunity by overcoming barriers and relying on its strengths in becoming a world leader in the export of garments.
