Bangladeshi exporters, particularly in the textile and apparel sector, have expressed growing concern following India’s announcement of a Rs. 4,531 crore (around US$740 million) export support package aimed at protecting Indian exporters from the impact of US retaliatory tariffs and strengthening their competitiveness in global markets.
The funding—equivalent to more than Tk 61.7 billion at current exchange rates—will be disbursed under India’s Market Access Support (MAS) scheme. The programme is designed to help exporters expand their international footprint through participation in overseas trade fairs, global exhibitions, branding initiatives and structured buyer–seller networking. Indian authorities have indicated that the scheme will place special emphasis on micro, small and medium enterprises (MSMEs) and priority export sectors, at a time when global trade remains volatile and demand conditions uncertain.
Industry leaders in Bangladesh fear that the expanded Indian support could further tilt the competitive balance in India’s favour, both in export markets and within Bangladesh’s own domestic market. The concern is particularly acute for the textile, spinning and apparel value chains, which are already under pressure from rising costs, subdued global demand and intensified regional competition.
Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said India has historically provided extensive and coordinated support to its export-oriented industries. He pointed to low-cost industrial loans at around 6% interest, government facilitation in land acquisition, labour cost advantages, and infrastructure and administrative support as key factors that significantly reduce production costs for Indian manufacturers.
“These structural advantages have made Indian yarn and fabrics highly competitive,” Hatem said, adding that Bangladesh has increasingly become both a legal and illegal destination for Indian textile inputs. He warned that the new export support package could intensify pressure across Bangladesh’s textile ecosystem, particularly the spinning sector, where many mills are already struggling to survive. Several domestic spinning units, he noted, have been forced to shut down due to their inability to compete with cheaper imported yarn.
Trade analysts say the development highlights deeper structural challenges facing Bangladesh as it prepares for post–LDC graduation, when preferential market access and policy flexibility will gradually diminish. India’s growing export competitiveness, backed by strong state support, is likely to become an even more formidable challenge in key markets such as the United States, the European Union and emerging destinations.
Policy experts have urged Bangladeshi authorities to respond with a comprehensive competitiveness strategy, including diversification of export markets beyond traditional destinations, targeted incentives for spinning, man-made fibre (MMF) and value-added segments, and faster implementation of reforms outlined in the Export Policy 2024–27 roadmap. Strengthening trade facilitation, reducing financing costs and addressing energy and logistics bottlenecks are also seen as critical.
Exporters cautioned that without timely and decisive policy intervention, Bangladesh risks further mill closures, erosion of backward linkage industries and a gradual loss of market share in the US$500 billion global garment and textile trade, at a time when regional competition is intensifying.
