Seize opportunity of turmoil in Bangladesh to boost garment exports: Congress
Praveen Chakravarty, who heads Congress’s wing of professionals and entrepreneurs, said India’s global garments market share has remained stagnant over the last decade
The Congress has written to Union finance minister Nirmala Sitharaman suggesting seizing the opportunity of the political turmoil in Bangladesh, the world’s second-biggest textile exporter, to boost garment exports and create jobs.
Praveen Chakravarty, who heads the party’s wing of professionals and entrepreneurs or the All India Professionals’ Congress, said India’s global garments market share has remained stagnant over the last decade whereas it doubled for Bangladesh and Thailand. He cited government think tank NITI Aayog’s estimates and said every $1bn of garment exports creates 125,000 direct and 500,000 indirect jobs. “Most importantly, 70% of these jobs are for women.”He expressed grave concern that India’s share of the global garments market has remained stagnant over the last decade while Bangladesh and Vietnam have doubled their share.
Chakravarty referred to Bangladesh’s political turmoil and said it is perhaps an opportunity to boost garment exports and create jobs. He outlined suggestions based on former Union finance minister P Chidambaram and economist Rathin Roy’s discussion with around 120 textile and apparel manufacturers in Coimbatore.
Chakravarty said India exports more natural fabrics than synthetic garments. He added it was because of the skewed import tax of 20% on synthetic fabrics. “The top five apparel importing countries America, Germany, Japan, France, and Britain buy 70% synthetic garments and 30% natural fabric apparel. India exports more natural fabrics and less synthetic garments. This is because of a skewed import tariff structure on synthetic fabrics of 20% which is hurting India’s apparel exports tremendously.”
Chakravarty suggested that the import tariff on synthetic fabric be reduced. He welcomed the production-linked incentive scheme for textile manufacturers. Chakravarty added that a collateral-free credit linked to exports for textile and apparel makers would ensure significant scaling of garment exports.
Chakravarty said it would also help immensely if India signed free trade agreements with the European Union, the UK, and the US for textile exports to compete with Bangladesh, which receives preferential duty treatment from these nations as a Least Developed Country.