08 November 2023, Mumbai
The United Arab Emirates (UAE) is a major market for India's ready-made garments (RMG) sector. In 2022–23, the UAE was the top buyer of Indian RMG in the Middle East and Africa (MEA) region, importing more than $1.21 billion worth of clothing.
Factors driving demand for Indian RMG in the UAE
Several factors are driving demand for Indian RMG in the UAE. These include:
The large Indian diaspora in the UAE. An estimated 3.5 million Indians are living in the UAE, making it the largest Indian community outside of India.
The UAE's growing economy and rising disposable incomes
The UAE's position as a regional trade hub
The UAE's strong demand for high-quality, affordable clothing
India's RMG exports to the UAE
India's RMG exports to the UAE have been growing in recent years. In 2022–23, India exported a total of $2.68 billion worth of RMG to the MEA region, of which $1.21 billion went to the UAE.
Challenges faced by India's RMG sector in the UAE
Despite the strong demand for Indian RMG in the UAE, there are several challenges that the sector faces. These include:
Competition from other countries, such as China and Bangladesh.
Rising input costs.
Infrastructure bottlenecks.
The outlook for India's RMG exports to the UAE
Despite the challenges, the outlook for India's RMG exports to the UAE remains positive. The UAE is a growing market for RMG, and India is well-positioned to capitalize on this growth.
Key opportunities for India's RMG sector in the UAE
There are several key opportunities for India's RMG sector in the UAE. These include:
Targeting the Indian diaspora in the UAE.
Focusing on high-value products.
Investing in branding and marketing.
Participating in trade shows and exhibitions.
India's RMG sector is poised for continued growth in the UAE
With its strong demand for RMG and its growing economy, the UAE is a promising market for India's RMG sector.
By addressing the challenges that it faces and taking advantage of the available opportunities, India's RMG sector is poised for continued growth in the UAE.
5 key insights :
- Top buyer in MEA
- Driven by diaspora, economy, trade hub
- Strong demand for high-quality, affordable clothing
- Challenges: competition, input costs, infrastructure
- Outlook positive: growing market, India well-positioned
