New Delhi: The recent decision by the United States to put a 35 percent tariff on Bangladesh is good news for India’s textile industry.
Bangladesh sells a lot of ready-made clothes to the US because their costs are low, which made their products cheaper and popular. But now, with this new tax, Bangladeshi clothes will become more expensive for American buyers. This means they will look for other countries to buy from.
India can benefit a lot from this change. Indian clothes and textiles are taxed less as compared to Bangladesh, so Indian products will become cheaper compared to Bangladeshi ones. This will make Indian manufacturers more attractive to American companies who want to buy clothes.
Because of this, Indian textile companies can expect:
More orders from the US as buyers switch from Bangladesh to India.
A chance to increase India’s share in the US market for clothes and textiles.
New long-term business partnerships with American buyers.
Also, since Bangladesh often buys yarn and fabric from India to make their clothes, this change might help Indian yarn makers too, as more buyers may order finished clothes directly from India.
