India’s Bold Move in Textile Exports Could Shake Bangladesh’s DominanceBy Amit Shukla

The Indian government has set an ambitious target to double its textile and apparel exports to $100 billion by 2030, up from the current $40 billion. To achieve this, India plans to focus on countries with Free Trade Agreements (FTAs) and promote high-value segments such as geographical indication (GI) products, carpets, handlooms, and silk. Additionally, districts that currently do not contribute to exports will be brought onto the export map.

This strategy is expected to directly impact Bangladesh, a major player in textile exports whose sector contributes more than 80% to its GDP and total exports. A significant factor in Bangladesh’s success has been its status as a Least Developed Country (LDC), which provides duty-free access to major markets like the European Union and the United States. Lower labor costs have further strengthened its competitive edge.

The Textiles Ministry is preparing a comprehensive plan to increase India’s export share with FTA partners from the current 5.8% to around 12%. The strategy also emphasizes strengthening branding for high-value products.

India aims to diversify its exports and double its share in imports of the top 40 countries from 4.8% ($28.3 billion) to 10%, potentially reaching $55–60 billion. Traditional markets such as the US, EU, and the UK account for around 55% of India’s textile exports, while emerging markets including Australia, Canada, Bangladesh, the UAE, and Sri Lanka contribute 20%.

An official told ET, “We need to enhance market linkages for products that have strong export potential, cultural value, and employment generation capacity.” Under the plan, states are being encouraged to develop new exporters, support first-time exporters, introduce product diversification, and integrate new districts into the export ecosystem.

Why Bangladesh Might Be Concerned
India’s move could be a game-changer. Lower logistics costs, expansion of FTAs, and large-scale availability of raw materials such as cotton and synthetic fibers could give India a competitive edge in the global market, challenging Bangladesh’s dominance. Additionally, as Bangladesh is poised to exit LDC status, it will lose the associated tax exemptions—creating a prime opportunity for India to capture a larger share of global textile exports.