Due to COVID-19 restrictions and strict U.S. sanctions, China continues to lose market share around the world. Bangladesh has turned its focus to importing man-made fiber yarns and fabrics from India to fulfill apparel orders from the United States and Europe.
India has gained market share with its competitive prices, high-quality raw materials, improved delivery times, opening of 2 new land ports. In December 2022, the Bangladesh government allowed the import of man-made fiber yarns and fabrics to save time and meet global orders on schedule.
India Textile and Trade Expo showcases specialized fabrics from factories in Gujarat
The readymade garment industry has made Bangladesh one of the world’s largest exporters, with the industry accounting for 84% of the country’s exports. India is focusing on improving its infrastructure for man-made fiber garments as it expands its supply of raw materials to Bangladesh, at a time when demand for cotton garments is dwindling.
At the India Textile and Trade Expo in January 2023, more than 60 companies from the Gujarat Textile Center showcased yarns and specialty fabrics, including man-made fibers and blended yarns. These high-priced specialized fabrics are used to make women’s clothing, bridal gowns, gowns, sarees (traditional clothing for South Asian women) and children’s clothing, and are the main items for global export orders.
Shovon Islam, president of Sparrow Group, one of Bangladesh’s largest garment exporters, said that in the past, almost all of the group’s needs were imported from China. In 2022, they will import 20% of raw materials from India. In particular, they increase imports of raw materials for export to the U.S. market.
At the same time, a delegation from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) headed by Chairman Faruque Hasan is expected to visit India , making plans to purchase man-made yarn for its global export part. Hasan said that Gujarat has a reputation in man-made fiber yarns and fabrics. Bangladesh is also paying special attention to such products. Overall, the association is increasing focus on raw materials produced in Gujarat and reducing imports from China.
The demand for man-made fibers is greater
It is estimated that in 2021 The annual global clothing market is worth US$440 billion, of which man-made fiber clothing accounts for more than 50%. Bangladesh’s cotton garment exports account for 72%, man-made fiber garments account for 24%, and the rest are silk, wool, and others.
However, a Research and Policy Integration for Development (RAPID) report points out that in the next few years, the growth of the man-made fiber apparel market will continue to be greater than that of the cotton market. Of Bangladesh’s total man-made fiber apparel exports in 2021, local textile mills contributed only 15%, about 70% were imported raw materials from China, and 10% came from India. But that’s changing now. Global sourcing of apparel from other countries is increasing amid fears of more restrictions in China, which in turn will make Bangladesh import more apparel from India.
