Indian textile exporters are projected to benefit from the domestic unrest in Bangladesh and the high production costs in Vietnam, according to a report by financial consultancy firm JM Financial.
Vietnam and Bangladesh are important producers and exporters of clothing and textiles. For major companies in India’s domestic textile and apparel industry, the firm’s analysis indicates that the enormous addressable market size, excellent execution, and free trade agreement with the UK all encouraging. Indian players’ margins will benefit as the high freight costs brought on the peak season exports and the Red Sea problem are anticipated to subside in the upcoming months. Margin will also benefit from the reduction in yarn prices.
The market share of India’s clothing exports to the US and the UK have gradually increased, going from from 6 per cent to 5 per cent in 2023 to 7 per cent and 6 per cent in 2024, respectively.
China’s market share has been declining globally at the same time. With rising wage costs as the China+1 theme plays out, the UK’s market share has decreased from 27 per cent in 2020 to 19 per cent so far in 2024, according to the JM Financial research.
It claimed that, overall, the ongoing holiday season might cause a little increase in demand worldwide. As retailers prepare for the holiday season, Indian players anticipate comparatively stronger demand in the second half of the global inventory de-stocking cycle than in the first half.
