In a world swayed by Trump tariffs there is no dull day. Here it comes "Bangladesh just inking a game‑changing US trade deal recently", slashing tariffs to 19% (from 37%) with zero duties on select apparel using US cotton as per source based information. Putting it in the context; Whereas, India's own deal sits at 18%—a razor‑thin/insignificant so to say 1% edge now flipped on its head thanks to this announcement.
Let us bear in mind, Bangladesh's RMG sector, 80%+ of its exports and $30B+ to the US gets a catalytic boost, especially with quota‑free zero tariffs for US‑sourced fabrics; unlike India where country is a secular sectoral story and, risks & rewards are evenly balanced given currently less dependence on textile industry in the overall nation's export basket as observed by trade experts.
For Indian textile exports? Caution is the watchword. US is our #1 market (29% of $37.7B total textile/apparel exports in 2024‑25: Source trade data). Textile stocks already were under stress today post‑announcement as investors panic over lost competitiveness. India's $1.5‑2B EU apparel gains are up against renewed wave of pressure, notably with Bangladesh eyeing EU FTAs.
Likely:
Short‑term, expect 15‑20% drop in US garment shipments; long‑term, industry back home needs policy tweaks/interventions like GST cuts or PLI boosts to claw back share and be of its own.
Context makes all the difference
Experts caution, "Indian textile warriors, time to pivot—diversify markets, upgrade tech, or risk the dustbin as there is no room to get complacent close on the heels of India-US trade deal".
CREDITS: Pulled off by automated generated text by the internet. "Edited a part of it".
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