India is progressively eating into Bangladesh’s share in the global apparel trade. For instance, India last year was the third biggest exporter of garment items to the US, which happens to be Bangladesh's single largest export destination. In the first eight months of this year, India climbed up to the second spot, while Bangladesh slipped from the fourth position to the sixth.
Thanks to the stimulus package, Indian manufacturers can offer lower prices and are fast catching up with their Bangladesh counterparts. In 2016, India's share in the global apparel trade was four per cent and Bangladesh’s 6.4 per cent. Moreover, the Indian rupee has devalued a lot against the dollar. India’s apparel exports last fiscal year were up 15 per cent year-on-year.
In contrast, Bangladesh, despite even being the second largest garment exporter after China, shipped items that were an increase of just 0.20 per cent from a year earlier. India’s garment shipments are expected to grow between 15 per cent and 18 per cent this fiscal year.
The US market, which accounts for 30 per cent of India’s apparel exports, is doing reasonably well. South America, Europe, Middle East and Japan are other promising markets for India.