Political turmoil in Bangladesh and the rising cost of garment produce in China will offer ‘a sweet time soon’ to Indian apparel exporters, reports the Economic Times (ET). 

‘Orders are being diverted to India from these nations for high-value garments, which is likely to help the Indian apparel exports that has clocked a 13.4% growth in dollar terms in April-February of FY15’, says the report.  

Quoting secretary general of Confederation of Indian Textile Industry (CITI) DK Nair ET reports: ‘The apparel exports have shown an encouraging growth in the current fiscal. The political turmoil as well as safety and security issues in Bangladesh have emerged as a major problem for the garment industry there.’  

The report claims ‘some of the global buyers of Bangladesh are now showing interest to purchase garments from India’. Though the United States' (US) demand is showing recovery, demand from the European Union (EU) still remains muted, says the report.

Showing statistics, the report says India’s garment exports stood at $1,538 million in February with an increase of 8.7% against the corresponding month in 2014.  

India's garment export to the global markets for the period April-February of FY15 was $15,262 million, up by 13.4% from $13,456 million during the same period of the previous financial year. 

Managing director Jyonti Apparels HKL Magu said the major reason in growth in exports is due to rising cost of producing high-value garments in China, says the report.

‘Increase in wages in China is killing the garment industry there. All the international brands are now working with Indian apparel exporters. Bangladesh produces cheaper low-value garments and we cannot compete with them in a big way. But definitely, Indian exporters can leverage the higher cost of production in China,’ claimed Magu.

However, Magu pointed out that global buyers are delaying shipments as they are not keen to create an inventory now. 

‘They have placed orders but are delaying the consignments, which have impacted our exports in January and February. The same trend is continuing in March as well. So overall, the exports may grow by 12% in the current fiscal.’