From Protest to Opportunity: Why Global Buyers Are Shifting Garment Orders from Bangladesh to India? India’s Ascent as a Global Garment Sourcing Hub Amid Bangladesh’s Turmoil....

Introduction:

The global apparel industry is at a crossroads. As Bangladesh, the world’s second-largest garment exporter, grapples with political unrest and labor disputes, international brands are pivoting to alternative sourcing destinations. India, with its robust textile infrastructure, skilled workforce, and supportive government policies, is emerging as a frontrunner in this shift. 

This transition is not merely a stopgap measure but a strategic realignment that could redefine global apparel supply chains. As brands like Primark, H&M, and Walmart turn their gaze to India, the country is poised to cement its place as a global garment sourcing hub.

Bangladesh’s Crisis: A Catalyst for Change:

Bangladesh’s garment industry, which accounts for over $47 billion in annual exports, has been rocked by instability since late 2024. Labor protests over inadequate wages have led to violent clashes, factory shutdowns, and port blockades, severely disrupting the supply chain. 

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) reported temporary factory closures to prevent vandalism, further delaying export schedules (Reuters, 2025). Political turmoil, including nationwide strikes and a fragile interim government, has compounded these challenges, raising concerns among global retailers about reliability.

This crisis comes at a time when geopolitical shifts are already reshaping sourcing strategies. The US’s renewed tariffs on Chinese apparel, driven by concerns over Xinjiang cotton and broader trade tensions, have pushed brands to diversify their supply chains (Just Style, 2024). 

With Bangladesh’s instability and Vietnam facing labor shortages, India stands out as a stable and scalable alternative.

Bangladesh's Vantage Point: While Indian manufacturers pay a 5% GST on locally-sourced fabric, Bangladeshi firms import fabric duty-free from China and receive export incentives for sales to India, providing them an estimated 10%-15% price advantage. Photo: The Times of India.

India’s Strategic Advantage:

India’s textile industry, employing over 45 million people and contributing 4% to the country’s GDP, is well-positioned to capitalize on this opportunity. Key textile hubs like Tiruppur, Ludhiana, Surat, and Bengaluru are witnessing a surge in inquiries from global brands, with the Apparel Export Promotion Council (AEPC) reporting an 11% year-on-year increase in ready-made garment exports, reaching nearly $10 billion in 2024 (Reuters, 2025). 

Industry leaders estimate that capturing even 10% of Bangladesh’s export market could create 500,000 direct jobs and 1 million indirect jobs in India.

The Indian government is bolstering this momentum with proactive policies. The Production Linked Incentive (PLI) scheme, targeting man-made fibers and technical textiles, offers financial incentives to scale up production and enhance competitiveness. Tariff reductions on raw materials like polyester and textile machinery are also under consideration, addressing cost disadvantages compared to Bangladesh’s near-zero import duties. 

Additionally, initiatives like the PM MITRA Parks and the Samarth Scheme for skill development are strengthening India’s supply chain and workforce capabilities.

Sustainability and Innovation as Differentiators:

Beyond capacity, India is carving a niche in sustainable and value-added apparel production. As the world’s second-largest cotton producer, India leads in organic cotton, accounting for nearly half of global output. 

The Bale Identification and Traceability System (BITS), utilizing blockchain and QR codes, ensures transparency in sourcing, aligning with the growing demand for ethical and eco-friendly practices in the EU and US markets (Outlook Business, 2024). 

Over 70% of Indian garment manufacturers have adopted sustainable practices, such as waterless dyeing and recycled polyester, further enhancing India’s appeal.

India’s flexibility in meeting diverse product demands also sets it apart. Unlike Bangladesh, which dominates in price-sensitive, basic apparel, India excels in premium and value-added segments, offering a wide range of products from luxury dresses to technical textiles. 

In 2024, over 45% of India’s apparel exports to the US targeted the premium market, closely rivaling China’s offerings (FASH455, 2024).

India’s Rising Star:

India, has been quietly strengthening its manufacturing base. Cities like Tiruppur, dubbed the “Knitwear Capital of India,” and Noida near Delhi have scaled up production capabilities, enhanced compliance infrastructure, and invested in worker welfare. 

Exporters here are now receiving increased enquiries and even fresh trial orders from American and European buyers concerned about disruptions in Bangladesh (Business Standard, 2024).

According to a March 2024 report in Apparel Resources, Indian knitwear manufacturers have seen a 15–20% surge in export order volumes over the past quarter. While this may partly be seasonal, industry insiders suggest it is also linked to order diversions from Bangladesh.

Implications for Global Retailers:

For global apparel brands, diversification is the new buzzword. The over-reliance on one country, as seen during the pandemic and now with labor unrest, is viewed as a business risk. Indian manufacturers—especially mid-sized, well-compliant exporters—are emerging as dependable alternatives.

Even global sourcing giants like Inditex (Zara), H&M, and Levi’s are reportedly exploring higher procurement volumes from India, according to trade insiders cited by Mint (2024).

Challenges and the Road Ahead:

Despite its potential, India faces hurdles in fully capitalizing on this opportunity. Infrastructure bottlenecks, particularly in logistics, and lower labor productivity compared to Bangladesh and Vietnam remain concerns. 

The industry’s fragmented manufacturing base, dominated by small units, limits its ability to meet the scale demanded by global retailers, who prefer factories with over 1,000 machines for consistent quality and volume (The Textile Magazine, 2025). 

Addressing these requires significant investment in large-scale facilities and streamlined regulations.

Moreover, India must navigate competitive pressures from Vietnam, which is also vying for Bangladesh’s market share. Liberalizing labor laws, reducing input costs, and enhancing skill development will be critical to maintaining India’s edge.

A Bright Future for Indian Textiles:

India’s textile stocks, including companies like KPR Mill and Gokaldas Exports, have rallied up to 10% in early 2025, reflecting market optimism about the sector’s growth (Economic Times, 2025). 

If Bangladesh’s disruptions persist, India could gain $300–400 million in monthly export orders, translating to ₹6,000–7,000 crore annually. 

The Bharat Tex 2025, India’s largest global textile exposition, was held from February 14 to 17, 2025, at Bharat Mandapam in New Delhi, with a co-located event from February 12 to 15, 2025, at the India Expo Centre and Mart in Greater Noida. This event which attracted large swarms of international buyers, further showcased India’s capabilities, positioning it as a global textile powerhouse.

Conclusion:

While Bangladesh’s garment sector has long been a low-cost powerhouse, the recent wage disputes and ensuing instability have created room for regional competitors. India, with its robust infrastructure, skilled labor, and reform-driven government, is well-poised to seize this moment. 

India’s emergence as a global garment sourcing hub is a story of opportunity meeting preparation. With Bangladesh’s ongoing crisis and shifting global trade dynamics, 

India is not just filling a gap but redefining its role in the apparel industry. By leveraging its integrated supply chain, sustainable practices, and government support, India is poised to transform from an alternative to a priority sourcing destination. 

For global brands, investors, and policymakers, the message is clear: India’s textile industry is ready to weave a new chapter in global fashion. For garment manufacturers across India, this may well be the beginning of a long-awaited export boom.

References:

🧨Reuters. (2025). India to promote its textiles as political crisis hits Bangladesh’s exports.  URL: https://www.reuters.com/world/india/india-promote-its-textiles-political-crisis-hits-bangladeshs-exports-say-sources-2025-01-14.

🧨The Indian Express. (2025). Textile clusters receiving higher enquiries amid Bangladesh crisis.  URL: https://indianexpress.com/article/business/textile-clusters-receiving-higher-enquiries-amid-bangladesh-crisis-order-conversion-by-early-2025-aepc-9761576/.

🧨Economic Times. (2025). Textile stocks rally up to 10% as Bangladesh port curbs likely to generate ₹1,000 crore biz for Indian firms. 

URL:  []https://www.reuters.com/world/india/india-promote-its-textiles-political-crisis-hits-bangladeshs-exports-say-sources-2025-01-14/.

🧨Outlook Business. (2024). India emerges as global hub for sustainable textile innovation.

URL: https://www.outlookbusiness.com/news/india-emerges-as-global-hub-for-sustainable-textile-innovation-news-416977.

🧨Just Style. (2024). ‘Opportune moment’ for India on global fashion stage. 

URL: https://juststyle.nridigital.com/just-style_magazine_dec24/opportune_moment_for_india_on_global_fashion_stage.

🧨FASH455. (2024). Exploring India as an apparel sourcing base for U.S. fashion companies.

URL:  https://shenglufashion.com/2024/12/01/new-study-exploring-india-as-an-apparel-sourcing-base-for-u-s-fashion-companies/.

🧨Mint. (2024, April 5). Global fashion brands eye Indian suppliers amid Bangladesh labor unrest. URL:  https://www.livemint.com.

🧨The Textile Magazine. (2025). Indian apparel manufacturers must invest in large-scale setups.

URL: https://www.indiantextilemagazine.in/indian-apparel-manufacturers-must-invest-in-large-scale-setups-the-time-is-now.

🧨Posts on X regarding Bangladesh’s export disruptions and India’s textile gains.

URL: https://x.com/lakshmishaks/status/1924302482634863000)[](https://x.com/NFPRC_LR/status/1924404260537844041).

🧨Apparel Resources. (2024, March). Tiruppur’s knitwear exporters see rise in orders as buyers diversify sourcing. URL: https://apparelresources.com