The textile industry has seen massive upward growth in recent years. It comes as no surprise that India and Bangladesh have emerged as the top
players in the apparel manufacturing sector.
With their rich fabrics, low labour costs, and handcrafted garments, the two countries have caught the attention of foreign markets such as the USA, UK, and Canada. But, the question arises, which country is the better manufacturer and exporter? The clothing manufacturers in Bangladesh and the apparel manufacturers in India have much in common. However, there are some critical points of difference.
Before we delve into details, here's a brief overview of the textile manufacturing sectors of the two countries.
Textile Manufacturers In India: A Brief Overview
India's textile and clothing industry is ranked among the world's largest and most popular producers and exporters. It is broadly divided into two categories.
The unorganised sector comprises handicraft, handloom, and sericulture sectors that practice the traditional production method. Then, the organized sector has
all the modern tools and uses the latest production methods.
India is ranked 5th in terms of exports and has a turnover of 37.11 billion. The garment manufacturers in Indiause extensive technology and produce textile products in bulk for sales in the domestic market and abroad.
Garment Manufacturers In Bangladesh:
Bangladesh's entry into the textile manufacturing scene is relatively recent, but it has nonetheless emerged as a force to reckon with. The biggest strengths of
the country lie in its low labour costs and a large workforce. Moreover, in recent decades, it has also adopted the latest production techniques and has managed to
gain an export turnover of 38.73 billion (2019 data).
The high-quality products combined with advanced technology and a well-established supply chain have made Bangladesh a dominant force on the international market. Wholesale clothing manufacturers in Bangladesh , therefore, have emerged as powerhouses in the apparel manufacturing sector.
Cost Of Production
Bangladesh has the edge over India when it comes to the cost of production since labour is much cheaper in the country. Moreover, there are more labourers employed by clothing manufacturers in Bangladesh than by Indian manufacturers. As a result, the average cost of production is significantly reduced,making exporting from Bangladesh cheaper.
Quality Of Production
The efficacy of India's handloom industry is unbeatable. The silk sarees, handcrafted outfits, and hand-embroidered clothing have immense popularity in the
domestic market and international borders.
As such, the quality of production in India ranks superior, and the country has made quite a name for itself globally. Thus, textile manufacturers in India have the edge over their Bangladesh counterparts when it comes to quality of production.
Raw Material Availability
Bangladesh and Sri Lanka do not produce sufficient quantities of cotton locally and have to source the significant chunk of their raw material requirements from China. This makes it challenging to maintain a steady price for its finished products, and the wholesale clothing manufacturers in Bangladesh thus suffer a setback. India has relatively better control over the input supply of its raw materials and can procure nearly 100% of its raw materials from local sources. Local availability of raw materials means that the manufacturers do not have to wait for the fabric to arrive to begin production. This reduces the lead time and they can supply at a faster rate than Bangladesh.
The textile industry in Bangladesh has greatly benefitted from flexible government policies. One of the most significant advantages that Bangladesh has is its
duty-free access to international markets. It also enjoys unique access to European Union and uses that to its advantage.
As a result of the duty-free export quota, the Bangladesh garment industry increased its clothing production to over 21 billion in 2017 from 7 billion in 2007.
The garment production in the Indian manufacturing industry is more streamlined, given how many years the industry has been in existence. The Bangladesh textile manufacturing industry is relatively newer, and therefore, the quality of production isn't at par with India for now. The Indian clothing manufacturers industry has come a long way since its inception and uses the latest tools and techniques for production.
The textile manufacturers in Bangladesh are heavily dependant on export earnings from readymade garments. The industry isn't self-sufficient and relies on fabric imports from foreign nations. A large chunk of the export earning is used to buy raw materials for production. As such, this lowers the level of profits for the whole sector. India, on the other hand, manages to retain a level of autonomy in its production process. Since its raw materials are primarily locally sourced, the profits that apparel manufacturers in India witness are higher.
The textile industry is the biggest source of employment for many Asian nations. It is the second-largest industry in India, just behind agriculture.
In Bangladesh, it is the primary source of foreign exchange earnings. Bangladesh is also the second-largest exporter of readymade garments behind China.
It is difficult to ascertain which of the two countries fairs better in the garment manufacturing industry. Both have their strengths and shortcomings. However, India has the added advantage of experience and locally derived raw materials.
Bangladesh, on the other hand, enjoys immense popularity in the fast fashion market. Thus, if you are confused about whether to look for clothing manufacturers in Bangladesh or garment manufacturers in India, weigh the pros and cons of each. Before going ahead with any decision, look at their strengths and shortfalls. Moreover, determine what exactly you are looking for. India and Bangladesh are not precisely viewed as competitors since these neighbouring nations have come together to dominate the textile market and give stiff competition to China. With collaborative focus, the two countries are touted to be the future and leading giants of the garment manufacturing industry globally.