India plans to bolster its textile and garment industry in the forthcoming budget, aiming to capitalize on disruptions in Bangladesh’s exports due to political instability. The government is considering financial support, tariff reductions, and incentives to enhance local production. This initiative seeks to attract international buyers, particularly from the U.S., who are seeking alternative suppliers. The textile sector, employing around 45 million people, may see a 10%-15% budget increase for the textile ministry and expanded production-linked incentives.
Additionally, tariff cuts on raw materials and machinery are under consideration. Recent data indicates that while Bangladesh’s garment exports to the U.S. declined by 0.46% from January to November 2024, India’s exports rose by 4.25%. Overall, India’s textile and garment exports grew by over 7% year-on-year, exceeding $23 billion, with readymade garment exports expected to surpass $16 billion by March end.
