India’s apparel manufacturing industry is starting to gain traction as political unrest in Bangladesh drives global buyers to shift their sourcing strategies. With many brands seeking reliable partners to meet export commitments, India is emerging as a strong alternative.
Sabu Jacob, Managing Director, Kitex Garments, explains, around 80 per cent of Bangladesh’s apparel exports are directed to the European market, primarily due to its duty-free trade benefits.
However, with India’s recent Free Trade Agreement (FTA) with the UK and an expected duty-free arrangement with the European Union, Indian manufacturers are poised to take on a larger share of this business.
Jacob emphasizes, India’s trade agreements with the United States - many of which allow for zero or significantly reduced tariffs - further strengthen the country’s competitive edge and will help generate substantial employment. The Indian government considers the apparel sector a crucial employment generator, he notes.
Further Jacob points out, a tariff pause implemented during the Trump administration has already influenced a shift in US-bound apparel sourcing - from countries like Cambodia and Vietnam to India - where tariffs are 15–20 per cent lower in comparison.
In 2024, India’s apparel export capacity stood at $17 billion, with nearly full utilization reaching $16.5 billion. For context, Bangladesh’s capacity is approximately $56 billion, while China leads at $140 billion. This opens up a major opportunity for India to grow its presence in global apparel exports, Jacob states.
To meet rising demand, Kitex Garments is expanding its production capacity to 3.1 million pieces per day, supported by a Rs 3,500 crore investment in its Telangana-based facility. The plant in Hyderabad is scheduled to be fully operational by December 2026.
In FY25, Kitex reported a 59 per cent surge in revenue, reaching Rs 1,020 crore from Rs 641 crore the previous year. Profit after tax more than doubled, rising 124 per cent to Rs 152.6 crore from Rs 68 crore. Jacob attributes this strong performance to enhanced operational efficiency, optimal capacity utilization, and overall factory improvements.
