By Admin 
The harsh attitude of Mohammad Yunus government against India has received a big blow. In the budget presented by the Government of India on Sunday (February 1, 2026), strong announcements have been made for the textile industry, due to which the backbone of Bangladesh i.e. its textile industry will be badly affected. The recent free trade agreement with the European Union is also a big blow to the textile industry of Bangladesh.
On Sunday (February 1, 2026), Finance Minister Nirmala Sitharaman presented the budget for the financial year 2026-27, in which she has announced silk production, machinery support, handloom and handicraft programs and skill development in the textile sector.
Bangladesh is the world’s second largest textile exporter
The budget also emphasizes on a strong policy for the labour-intensive textile sector, which aims to promote self-reliance, employment, innovation and global competitiveness. Bangladesh’s textile industry has always been a challenge for India. Bangladesh is the world’s second largest exporter of readymade garments, while India is sixth. In the year 2024, Bangladesh had exported textiles worth $52.9 billion, while India had exported a total of textiles, apparel and handicrafts worth $37.7 billion.
How will Bangladesh be shocked by India’s budget?
Ever since Mohammad Yunus’ government came to power in Bangladesh, its attitude towards India has been a bit harsh. At the same time, Bangladesh’s closeness with Pakistan has also started increasing. In such a situation, India has also started defining bilateral relations strategically, a reflection of which has been seen in the budget. India is preparing to make the textile market attractive. Not only will the budget deal a blow to Bangladesh’s textile industry, the free trade agreement with the EU will also deal a blow to it.
FTA is also a big blow for Bangladesh
After China, Bangladesh has the highest share in the European Union’s $263 billion textile market. It has captured 21 to 22 percent of the market. He has duty free access here, due to which his business is so big. At the same time, India’s share is only 5 to 6 percent, which means it is able to sell only $ 8 billion worth of clothes here because 9 to 12 percent tax is levied on it. However, after FTA, the tax will become zero, which will increase India’s textile business here and this is sure to give a blow to the textile industry of Bangladesh.