In the financial year 2023, Bangladesh maintained its position as the second-largest global exporter of ready-made garments (RMG), securing an 8.5% share of the market, second only to China’s dominant lead. India, by contrast, ranked seventh with a 3-4% share. This disparity highlights significant structural and competitive differences between the two South Asian economies in the RMG sector.
Bangladesh’s RMG exports, valued at approximately $40 billion annually, are a cornerstone of its economy, contributing 84% of its total export earnings. This success is attributed to its cost-effective labor, well-established production infrastructure, and strong relationships with global brands. Furthermore, government support through favorable policies and infrastructure investments, such as economic zones, has bolstered the industry’s growthIndia, while diversifying its product offerings and expanding its manufacturing base, lags behind due to challenges like higher production costs and inconsistent
labor productivity. Indian RMG exports were valued at $16-18 billion in 2023. However, the country has been benefiting from disruptions in Bangladesh, such as political instability and rising production costs, which have led to a shift in global orders. Major Indian exporters, including Arvind Limited and Shahi Exports, have reported a 15-20% increase in demand from markets like the U.S. and Europe.
Looking ahead, both countries face challenges like rising costs, global demand fluctuations, and the need for sustainable practices. Bangladesh’s dominance reflects its established competitiveness, but India’s gradual gains underscore its potential to capture more of the global market.
