The world’s second-biggest textile exporter, Bangladesh, has been in inevitable political turmoil since Sheikh Hasina left the country. Congress has written to the Union Finance Minister Nirmala Sitharaman suggesting seizing the opportunity to boost garment exports and create jobs.
Praveen Chakravarty, head of the party’s wing of professionals and entrepreneurs or the All India Professionals’ Congress, emphasised that India’s global market share has remained stagnant over the past decade. Whereas, it has doubled for Bangladesh and Vietnam.
Referring to Government think tank NITI Aayog’s estimates, he said that every US $ 1 billion of garment exports creates 125,000 direct and 500,000 indirect jobs with 70 per cent of them being for women.
Chakravarty highlighted that India exports more natural fabrics than synthetic garments, largely due to the 20 per cent import tax on synthetic fabrics. He explained that the top five apparel-importing countries – America, Germany, Japan, France, and Britain – buy 70 per cent synthetic garments and 30 per cent natural fabric apparel. However, India’s apparel exports are disproportionately focused on natural fabrics, primarily because the high import tariff on synthetic fabrics is significantly impacting the country’s ability to export synthetic garments.
Chakravarty sees Bangladesh’s political turmoil as an opportunity for India to boost garment exports and create jobs. He shared suggestions based on a discussion between former Union Finance Minister P. Chidambaram, economist Rathin Roy, and around 120 textile and apparel manufacturers in Coimbatore.
