The textile and apparel industry forms the backbone of South Asia’s economy. India and Bangladesh stand as two of the world’s most significant players in this sector, each contributing billions of dollars in exports and employing millions of workers. While both nations share a strong textile heritage, their industrial structures, export patterns, and growth trajectories are distinct.
India: A Diversified Textile Giant
India is one of the largest producers of textiles and garments globally, with a deeply integrated value chain from cotton farming to finished apparel. The Indian textile and apparel industry employs over 45 million people and contributes around 2.3% to the country’s GDP, according to the Ministry of Textiles and Invest India. In FY 2024–25, India’s textile and apparel exports stood at USD 36.61 billion, accounting for nearly 8–10% of total national exports. India is one of the world’s largest producers of cotton and jute, with Gujarat and Maharashtra together contributing more than half of India’s cotton output. The Government of India has launched initiatives like the Production Linked Incentive (PLI) Scheme and PM MITRA Mega Textile Parks to boost exports and attract investment in man made fibers and technical textiles. As per IMARC Group, India’s textile manufacturing market is valued at USD 128 billion in 2024 and projected to reach USD 190 billion by 2033, growing at a CAGR of about 4%. India’s strength lies in its wide range of products from traditional handlooms to high tech technical fabrics and a robust domestic consumer base that drives steady internal demand.
Bangladesh: The Global Apparel Export Hub
Bangladesh has emerged as the world’s second largest apparel exporter, right after China. Its economy is heavily dependent on the Ready Made Garments (RMG) sector, which accounts for more than 80% of total exports. Bangladesh exported USD 38.48 billion worth of garments in 2024, representing 6.9% of global apparel trade, according to BGMEA and The Daily Star. The garment sector employs nearly 4 million workers, with women making up around 80% of the workforce. The country benefits from duty free access to major markets like the European Union under the “Everything But Arms” (EBA) scheme, extended through 2029. Bangladesh’s strength lies in low cost, large scale production focused on knitwear and woven garments. The country houses over 400 large weaving factories producing more than 1.6 billion metres of woven fabrics annually. Following the Rana Plaza collapse in 2013, Bangladesh adopted stricter compliance through the Accord on Fire and Building Safety and later the RMG Sustainability Council, significantly improving factory standards. The textile manufacturing market is expected to reach USD 52 billion by 2030, growing at a CAGR of around 5.8%, according to Mordor Intelligence.
Comparing India and Bangladesh
India ranks as the sixth largest textile and apparel exporter in the world, while Bangladesh holds the second position in global apparel exports. In 2024, India’s textile and apparel exports were valued at USD 36.6 billion, whereas Bangladesh exported garments worth USD 38.4 billion. India employs around 45 million people in this sector, compared to Bangladesh’s 4 million, most of whom are women. India’s key advantage is its integrated supply chain from cotton cultivation to final garment production and a strong domestic market. Bangladesh, on the other hand, thrives on large scale, export oriented manufacturing driven by competitive labor costs. India’s growth rate in textile manufacturing is projected at around 4% till 2033, while Bangladesh’s is estimated at 5.8% till 2030. India’s major export markets include the USA, EU, UAE, and UK, while Bangladesh primarily exports to the EU, USA, and Canada. Government initiatives like India’s PLI Scheme and PM MITRA Parks aim to strengthen global competitiveness, while Bangladesh continues to focus on sustainability and green factory certifications through the RMG Sustainability Council.
The Common Thread
While India and Bangladesh differ in scale and strategy, both continue to play crucial roles in shaping global fashion supply chains. India’s strength lies in diversity and end to end capabilities, whereas Bangladesh dominates the ready made apparel segment through focused export growth and cost-effective. Together, they have positioned South Asia as the heart of the world’s textile manufacturing network, powering economies and livelihoods while driving innovation in sustainability and compliance.
