The ongoing global trade war has opened doors for Indian apparel exporters. However, it would require companies to scale up operations. Other necessities would include meeting the rigorous compliance demands of clients and managing strict fulfillment schedules. India still manages to be the world’s second largest manufacturer and exporter of fashion garments after China. The factories within the supply chain alone employ close to 13 million individuals.

Exports to the EU declined between two to three per cent for the first four months of the fiscal year. Key competing countries like Vietnam and Bangladesh have taken advantage of their bilateral trade agreements and least developed country status, respectively, and contributed to India’s declining position in the EU market. Not only have they affected India’s market share, they have gone forward and tapped into the opportunities in China’s declining market share. Indian apparel exports have been suffering but somehow persisted, mainly due to export incentives. In spite of that, there is undoubtedly going to be an impact on margins, as there are several other factors apart from just lower demand that play a vital role in determining India’s place in the global apparel and textile trade. Competitive pressure from countries like Bangladesh and Vietnam persists and raw material costs are rising rapidly.