India’s textile and apparel export sector is showing signs of recovery and is expected to perform better than ever once new trade agreements come into effect. Industry experts have dismissed concerns about competition from Bangladesh exporters, emphasizing the potential for significant growth in the sector. Animesh Saxena, General Secretary of Garments Exporters and Manufacturers Association, projects a 30-40% increase in business over the next two years.
Earlier this month, reports of Bangladesh exporters gaining an advantage through zero-tariff benefits in their trade deal with the US caused some anxiety in the Indian industry. However, Commerce Minister Piyush Goyal reassured stakeholders that India is likely to receive similar benefits once the legal aspects of the trade deal are finalized. R. K. Vij, President of Textile Association (India), highlighted the conditions that may offset the perceived advantages for Bangladesh exporters.
Industry leaders emphasized that Indian cotton growers are supported by the government through measures like the minimum support price and import duties. They noted that while US cotton may have certain advantages, Indian cotton remains a cost-effective option for the industry. Additionally, they highlighted India’s competitive position in trade deals compared to other Asian counterparts like Bangladesh and Vietnam.
With the anticipation of favorable trade agreements with the US and the EU, Indian textile and apparel exporters are optimistic about the future. The industry is poised to benefit from enhanced market access and reduced tariffs, paving the way for growth and expansion in the global market. Despite recent declines in textile and apparel exports, industry leaders remain positive about the sector’s prospects in the coming months.
