Strategic Textile Pivot Leveling the Playing Field Against Bangladesh in the EU

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India’s textile industry is approaching a rare window of opportunity as Bangladesh prepares to lose its Least Developed Country (LDC) trade advantages by 2029. Currently, India faces a 12% MFN tariff in the EU, whereas Bangladesh enjoys zero-duty access, giving them a massive market share in readymade garments. However, the recently finalized India-EU FTA grants India duty-free access, subject to double-stage processing, which Indian exporters can meet due to their vertically integrated supply chains. As Bangladesh transitions to stricter rules of origin under GSP+, India is well-positioned to recapture the mass-market apparel segment through cost-competitive production and superior quality.

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