India and the UAE are set to achieve a bilateral trade milestone of $100 billion by 2030, thanks to the Comprehensive Economic Partnership Agreement (Cepa), according to a senior Indian diplomat. Officials report that foreign buyers are considering shifting 10 to 15 percent of their orders to India due to disruptions in major garment exporting countries like Bangladesh, China, and Sri Lanka.

"Bilateral trade between India and the UAE has surged rapidly under Cepa, rising from $69 billion in 2022 to $85 billion this year, with projections indicating it will surpass $100 billion before 2030," stated Satish Kumar Sivan, Consul General of India to the UAE, during the inauguration of the 2nd Brands of India Exhibition at the Dubai World Trade Centre.

Sivan emphasized that Indian exporters should capitalize on Cepa and the competitive business environment in the UAE, using it as a gateway to expand exports to other regions. The Brands of India Exhibition is a strategic platform for Indian apparel manufacturers to leverage Cepa, facilitating duty-free apparel imports. Given the disruptions in global apparel manufacturing hubs like Bangladesh, Sri Lanka, and China, the event offers a prime opportunity to attract global buyers to explore sourcing from India, with Dubai serving as an ideal gateway to the world.

China, Bangladesh, Vietnam, India, Hong Kong, Turkey, Germany, Mexico, Italy, and Indonesia are the largest exporters of clothing globally. Bangladesh, the world's second-largest exporter of ready-made garments after China, saw its garment exports reach $46.99 billion in FY 2022-23, with a 10.27 percent year-on-year growth. However, recent unrest in Bangladesh's garment industry has led to severe clashes, resulting in factory closures and negatively impacting exports, which provide livelihoods to over four million people.

The global apparel industry is a significant pillar of international commerce, with robust growth projected from $655.7 billion in 2023 to $703.11 billion in 2024, reflecting a compound annual growth rate (CAGR) of 7.2 percent. By 2028, the market is expected to reach $918.71 billion, growing at a CAGR of 6.9 percent.

The Brands of India Exhibition, organized by the Clothing Manufacturers Association of India (CMAI), represents India's apparel and textile industry. With 5,000 members and serving over 25,000 retailers across India, the exhibition aims to introduce members to various export destinations, including GCC states, the wider Middle East, North Africa, the European Union, and CIS region.

Apparel exports from India to the UAE were $462.3 million from April to August 2024, with expectations of growth during Ramadan Eid. Santosh Katariya, President of CMAI, highlighted that the UAE has been a significant market for Indian apparel for many years, accounting for 12 percent of total apparel exports from India and serving as a gateway to neighboring countries.

The exhibition presents an opportunity for Indian manufacturers to attract global buyers, with Dubai as an ideal gateway. Compared to a 15 percent decrease last year, apparel exports from India increased by 8.5 percent in the first half of the current fiscal year. Foreign buyers are considering shifting 10 to 15 percent of their orders from Bangladesh to India, potentially bringing in an additional $300-400 million each month.

India is recognized globally as a prime sourcing hub for quality apparel, known for low labor costs, the ability to process small orders at competitive prices, decades of expertise in white label manufacturing for renowned global brands, and timely delivery supported by efficient logistics systems. The exhibition showcases leading manufacturers from cities like Mumbai, Jaipur, Surat, Ahmedabad, Bengaluru, Tirupur, Kolkata, Noida, Ludhiana, New Delhi, Indore, Solapur, and others, exemplifying the diversity of India's manufacturing capabilities.

The event has attracted over 1,500 retailers, wholesalers, and importers from the UAE, Saudi Arabia, Oman, Qatar, Bahrain, Yemen, Egypt, Turkey, Angola, Ghana, Rwanda, Ethiopia, Morocco, Nigeria, Kenya, Somalia, Algeria, USA, UK, Australia, Canada, Germany, Greece, Singapore, South Africa, and other countries. CMAI has promoted the show extensively, inviting overseas buyers from over 60 countries and offering exclusive privileges like hotel accommodation, F&B, and business matching services.

Leading retailers and chain stores from the Middle East, including Lulu Group, Landmark Group, Al Safeer Group, Brands Group, R&B, and BMA Group, are key buyers expected to visit the show. Additionally, hundreds of on-the-spot buyers are anticipated during the three-day event.

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