"Can India’s garments industry benefit from Bangladesh’s turmoil?", 12th September, 2024

...Despite being the world’s second-biggest producer of cotton—which it exports to Bangladesh—India lags behind its neighbour in garment production, exporting a quarter as much by value in 2023.Recently a group of exporters based in Tiruppur, a textile hub in southern India, said it had earned fresh orders worth $54m because of the unrest in Bangladesh. Another group based outside Delhi said it had received 15% more orders in August from Zara, a Spanish fashion firm.

...Moreover, Bangladesh still enjoys big advantages over its competitors. Labour costs remain lower than elsewhere. Unlike India, the country also enjoys preferential access to European markets. Above all, its history of textile production means that it is well-equipped to handle large orders...

...According to the bank’s research, the two biggest beneficiaries from China’s shrinking share of low-skill manufacturing exports like garments are Bangladesh and Vietnam...

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