Is there an opportunity for Indian Clothing Manufacturers due to Economic crisis in Sri Lanka?

Sri Lanka, fondly called as Island nation, is under severe debt crisis, one of the main reason being that Covid-19 pandemic has severely reduced the flow of tourists in to the country and this has in turn has reduced in-flow of foreign currency. Tourism is one of the most important foreign exchange earner for Sri Lanka. Sri Lanka is  dependent on sugar, pharmaceuticals, clothing and apparel raw materials such as fabrics, accessories and other essential products and dollar reserve is needed to procure these items.

Economic crisis has already increased the diesel prices, inability to import coal has lead to severe power cuts - which has a direct effect on clothing manufacturing industry in Sri Lanka. Cost of clothing manufacturing will increase sharply in the year 2022 because of this economic crisis, which in turn will increase the price per garment. Competitive advantage for clothing buyers, importers and retailers of the World to buy from Sri Lankan private label clothing manufacturers are,

• Colombo Port - Which is one the busiest and 25th largest port in the world and is located Strategically in the world map. 
• Europe has GSP+ agreement with Sri Lanka. This means that European nations can import clothing from Sri Lanka with zero percent duty.

The Current economic crisis seems to offset the competitive advantage held by Sri Lankan private label mens, women's & children's clothing manufacturers. Looking at the current situation, definitely clothing manufacturers from India have great opportunity in wooing the clothing buyers, who are manufacturing currently in Sri Lanka. In the current scenario, Main advantage for the clothing retailers to manufacture clothing in India is,

• Strong Economy and Government
• Availability of cotton, since India is the second largest producer of cotton in the world.
• Experienced clothing manufacturing cities such as Tirupur, which can manufacture clothing from knitting, dyeing to stitching and finishing.
• Direct connectivity to Europe and USA through Cochin Port, Nhava Sheva Port, Chennai Port and Mundra Port.​