5000 factories of competitors got the full order

Currently, orders from Bangladesh's garment sector are gradually shifting to Tirupur in India, which was once a major competitor.

Bangladesh Orders Shifting to India in Large Numbers.

5,000 Factories Experience 1/3 Increase in Orders.

Tirupur is known as one of India's largest textile hubs, nearly 5,000 garment factories at a 95% rate of operating commence.

A few months ago, these factories were operating at 60-65% capacity, but now orders from the USA and the UK have increased their capacity.

KM Subramaniam, the president of the Tirupur Exporters Association (TEA) said, that British buyers asking for samples now and keen to sign Free Trade Agreement (FTA) to avoid tariffs. The India commerce ministry said the agreement will be implemented early next year.

Due to the ongoing unrest in Bangladesh, some Western countries, especially the USA and the UK, have shifted clothing orders to Indian factories. Summer clothing orders have finished and arrived in the USA market, and now the Indian factory is in full swing.

In the current fiscal year, Tirupur's garment industry revenue is 350 billion rupees, and it may increase to 400 billion rupees in the next financial year.

The large factories in the Indian garment industry have sufficient capacity to handle orders shifted from Bangladesh.

Data from the Indian Ministry of Commerce shows that garment exports grew by 35% in October.Export revenue at the beginning of the year was 908.7 million US dollars, increasing to 1.2 billion USD in October.

11 business groups condemned the attack against on garment factory owners. Hope to Protect the Industry.

Recently, 11 major business organizations in Bangladesh strongly protested and condemned the attack on Rafiq Mahmoud.

In a joint statement on Saturday, these organizations blamed the incident on "some illegal elements called Shramik," saying that the attack on entrepreneurs shocked the industry. This incident will not only deter future entrepreneurs; conversely, it will have an adverse effect on the investment decisions of potential foreign investors in the future.

They asked the business community to take the necessary measures to ensure that such incidents do not occur in the future and to punish those involved. At the same time, the government was asked to protect all industries, including the garment industry, the country's main export sector.

These organizations say that there is a faction that is inactive, undermining the overall economic stability(including the garment industry).

It is important to quickly identify them. They should be disciplined through the correct application of the law.

What Are the Risks of Losing Export Orders?

Currently, Bangladesh's garments account for about 84% of the country's total export revenue.

About 2 million people (including 4 million workers and their families) rely on the garment industry for a living. However, the scene gets a little blurry. Because a large proportion of regular export orders go to competing countries.

Bangladesh's main export markets are the USA and the European Union. About 17-18% of garments are exported to the United States, and about 50% are exported to the European Union.

However, the country exports to these markets have declined in recent years, which is concerning.

According to the latest statistics from the US Office of Textiles and Apparel (OTEXA):

From January to July, Bangladesh's exports to the United States declined by 10.28%.  Competitor Vietnam's exports only decreased fell by 1.53%. India's exports fell by 2.24%.

This trend is an ominous sign for Bangladesh.

Among the top 10 garment exporters in the world market, China's exports fell by 4%, Pakistan's exports fell by only 1.5%, Indonesia's fell by 7.82%, and Cambodia's fell by 6%.

Similarly, Bangladesh's garment exports to the EU fell by 3.5% between January and August. In contrast, Cambodia's exports increased by 12.78% and Pakistan's by 7.3%.