Bangladesh's booming garment sector drives demand for polyester, an opportunity for India

Bangladesh, the world's second-largest garment exporter, is witnessing a huge demand for polyester fibers and yarns. This trend presents a significant opportunity for India, a leading producer of these synthetic textiles.

The global polyester fiber market is projected to reach a staggering $161.3 billion by 2032, reflecting a growth of 7.1 per cent. While Bangladesh boasts a 75 per cent cotton base in its garment exports, polyester makes up a whopping 77 per cent of global apparel. This gap is being bridged by rising polyester demand. Bangladesh relies heavily on imports to meet its polyester needs. In 2022 alone, the country imported 1.10 lakh tonnes of Polyester Staple Fiber (PSF).

Reasons for polyester’s demand

Several factors are responsible for polyester’s growing demand in Bangladesh. One major reason is the global fashion industry is increasingly favoring polyester-based clothing, driven by factors like affordability, durability, and versatility. Moreover polyester offers a cost advantage over cotton, particularly relevant for Bangladesh's competitive garment export market. And blending polyester with cotton offers desirable qualities like wrinkle resistance and easier care. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) aims to boost this trend. They aim for a future where Man-Made Fiber (MMF)-based apparel exports reach 40 per cent of Bangladesh's total by 2030, up from the current 26 per cent.

Opportunities for India

India, a major polyester fiber producer, is well-positioned to capitalize on this demand. Here’s why:

Geographical advantage: India's proximity to Bangladesh translates to lower transportation costs compared to other suppliers.

Established industry: India has a well-established polyester production base, with the potential to scale up exports. By ramping up production and streamlining export processes, India can become a reliable supplier of PSF and polyester yarn to Bangladesh.

Technological collaboration: India can collaborate with Bangladesh to share expertise and technology in polyester production, fostering a mutually beneficial partnership.

Table: India's polyester exports to Bangladesh (in lakh tons) 

The data indicates a steady rise in India's polyester fiber exports to Bangladesh. With strategic planning, India can significantly increase its share in this growing market.

However, at the same time, India faces competition from other polyester producers like China. Competitive pricing and efficient logistics will be crucial. Also, ensuring smooth cross-border trade and efficient transportation infrastructure will be vital for successful collaboration.

The growing demand for polyester fibers and yarns in Bangladesh presents a significant opportunity for India's textile industry. By capitalizing on its production capacity, technological expertise, and geographical proximity, India can become a key supplier to Bangladesh, further strengthening the economic ties between the two nations.