India Eyes Textile Boom Amid Bangladesh Crisis

In response to Bangladesh's political turmoil affecting garment exports, India plans to enhance its textile sector through financial support, tariff cuts, and production incentives. The government aims to boost its textile ministry budget and local manufacturing as global retailers seek alternative suppliers.

India is set to enhance its textile and garments industry with significant financial backing and strategic tariff cuts, targeting a boost in local production. Two government insiders revealed the upcoming budget measures aimed at supporting this pivotal sector.

The ongoing political unrest in Bangladesh has led international buyers to consider India as a potential garment source. Indian exporters have reported a surge in orders from U.S. companies seeking alternative suppliers, according to Mithileshwar Thakur of India's Apparel Export Promotion Council.

The textile industry, a major employer in India, is likely to see a budget increase of up to 15% for 2025/26. Enhanced production-linked incentives are also on the table, alongside possible tariff reductions on critical inputs such as polyester and textile machinery, as India seeks to remain competitive against Bangladesh's low import duties.

(With inputs from agencies.)