Indian RMG exports surge 17.3pc in September despite global headwinds

Despite global headwinds, India’s readymade garments exports in September have increased 17.3 per cent from a year ago.

Citing a CareRatings report, India-based news outlet The Telegraph said Bangladesh’s political instability benefitted India’s exports despite global headwinds, including inflation and supply chain disruptions.

“India’s readymade garment (RMG) exports have recorded high growth despite global headwinds and continued inflationary pressure,” said Sudhir Sekhri, chairman of India’s Apparel Export Promotion Council (AEPC). “Even the major apparel-exporting countries have witnessed a slowdown in the RMG export growth in recent months.”

“Bangladesh, one of the world's top garment exporters, is grappling with socio-political unrest, which has led to the temporary closure of some factories,” The Telegraph says.

“If the socio-political disturbances in Bangladesh persist for more than one or two quarters, their exporters could face challenges in ensuring on-time delivery. In such a scenario, India could gain monthly export orders worth $200-250 million in the near term,” according to the report.

“With operational efficiencies and backward integration, Indian exporters could permanently capture market share from Bangladesh,” the report says.

“The situation has opened new opportunities for Indian exporters to expand their global footprint,” it adds.