Modi govt gets ready to show Bangladesh its place, big steps against Yunus govt likely in…
Under Yunus's leadership, an anti-India sentiment surged in Bangladesh, which he failed to contain. Instead, Yunus leaned towards Pakistan, further straining relations with India.
India has devised a thought to plot the struggling textile exchange from Bangladesh, which has been severely impacted by the nation’s ongoing political turmoil. The Modi govt is reportedly brooding about several incentives for the textile sector, which can presumably be announced within the upcoming funds on February 1. Final twelve months, frequent violence erupted in Bangladesh, ensuing in Sheikh Hasina’s resignation as Top Minister in August and her departure from the nation. Following this, Nobel laureate Muhammad Yunus was once appointed as the intervening time Top Minister. However, below Yunus’s management, an anti-India sentiment surged in Bangladesh, which he didn't contain. As one more, Yunus leaned towards Pakistan, further straining kinfolk with India.
Potential announcements for the Textile Industry in Budget
Reportedly, the textile sector, which employs an estimated 4.5 crore folk in India, may glance a 10-15 per cent magnify in funds allocation for the monetary twelve months 2025-26. Essentially the most contemporary funds stands at Rs. 44.17 billion and should be raised to augment stammer and modernization within the sector.
The govt.may magnify the allocation for the Production Linked Incentive (PLI) plan for the textile sector in basically the most contemporary monetary twelve months. At demonstrate space at Rs. 450 million, the allocation may per chance be raised to roughly Rs. 600 million. This plan affords tax incentives and other advantages to companies engaged in local manufacturing, encouraging domestic manufacturing and competitiveness in global markets.
Tariff reduction below consideration
In step with repots, discussions are underway to decrease tariffs on raw affords cherish polyester and viscose staple fibers, besides textile equipment. At demonstrate, import obligations on these fibers vary from 11% to 27%, whereas in Bangladesh, these obligations are only about zero. This discrepancy puts Indian apparel exporters at a drawback.
India’s exports glance stammer
Facts from the U.S. Pickle of enterprise of Textiles and Apparel unearths that from January to November final twelve months, Bangladesh’s apparel exports to the U.S. declined by 0.46%, reaching $6.7 billion. In difference, India’s apparel exports grew by 4.25%, reaching $4.4 billion.
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