European Apparel Brands Shift Sourcing To India Amid Bangladesh Crisis
Amid global trade turbulence, India has emerged as a strategic beneficiary as major European apparel brands shift sourcing away from Bangladesh and toward India. Top brands from the UK and the European Union have begun anchoring negotiations with Indian exporters, signalling what industry observers describe as a tectonic reorientation in global apparel supply chains.
Bangladesh, once viewed as the world’s most dependable apparel hub, has seen its position weaken sharply following political upheaval, the takeover of an interim regime in Dhaka and subsequent economic and supply chain distress. With factories shutting down and stability in question, global apparel brands are increasingly viewing Bangladesh as a high-risk sourcing base. European companies, in particular, consider fresh investments there unviable under the current climate.
Against this backdrop, retailers from across Europe including Marks & Spencer, Primark and Next have begun scouting India as a credible, resilient and long-term partner. Industry sources indicate a surge in factory visits, technical audits and supplier evaluations in major hubs such as Tirupur in Tamil Nadu.
According to the Tiruppur Exporters Association, brands like Marks & Spencer, C&A, Primark, Mothercare, Next and Duns have already initiated due diligence processes to explore new partnerships and scale up procurement from existing suppliers. Exporters confirm that brands already sourcing from India are now actively planning to expand order volumes, marking a significant economic and strategic milestone for the country.
These developments coincide with broader geopolitical shifts, including heightened tariff frictions under the Trump administration, which have pushed companies to diversify supply bases. Strengthening apparel exports would bolster India’s economic resilience amid uncertain geo-economic conditions.
Europe has long been a critical market for Indian textiles and apparel. In 2024–25, the European Union accounted for 19.6 percent of India’s exports in this sector, while the UK alone represented 5.4 percent. With policy tailwinds beginning to align, this share is poised to rise further.
The timing is particularly crucial as India and the European Union prepare to sign the Free Trade Agreement (FTA) on January 27, set to become the EU’s biggest trade deal to date in both scale and scope. The agreement will sharply reduce duties and non-tariff barriers, easing market access for Indian exporters. Analysts expect the FTA to act as a stabiliser for both economies as they navigate tariff-related disruptions stemming from US policies.
Notably, agriculture has been excluded from the India–EU FTA, with New Delhi refusing to relax tariffs to protect its domestic agricultural ecosystem, which sustains over 40 per cent of the country’s workforce. Officials argue that opening the sector indiscriminately could destabilise farmer livelihoods.
Meanwhile, the India–UK FTA signed recently has already granted 99 per cent of Indian exports duty-free access to the British market. Combined with the forthcoming EU agreement, India’s export corridors into Europe are set for faster, friction-free growth.
Under the India–EU FTA, New Delhi could unlock trade gains estimated at US$ 100 billion annually. India–EU trade is already trending upward, both bilaterally and collectively and the apparel sector is emerging as a flagship beneficiary of this new alignment.
With Bangladesh’s turbulence accelerating sourcing shifts and FTAs providing unprecedented market access, India now holds a decisive competitive edge. The confluence of political, economic and trade factors positions India not just as an alternative, but as the next major apparel and manufacturing hub for Europe, strengthening its domestic economy and enhancing its attractiveness as a global export destination.
