Bengal likely to get textile cluster as part of Modi-Biden trade talks for export boost

Kolkata: West Bengal is likely to get a textile cluster soon as part of the recent trade discussions held between Prime Minister Narendra Modi and US President Joe Biden where India has plans to set up 75 such textile clusters across the country to boost its export.

In the recent Modi-Biden meeting, the leaders welcomed the signing of a Memorandum of Understanding (MoU) between the Ministry of Micro, Small and Medium Enterprises and Small Business Administration for promoting cooperation between U.S. and Indian small and medium-size enterprises by improving their participation in the global marketplace through capacity building workshops in areas such as trade and export finance, technology and digital trade, green economy and trade facilitation.

Sources said that the decision to set up such textile clusters to boost exports also comes at a time when India is planning to strengthen its trade with the US. Experts view this as a strategy to tackle India’s trade deficit with China.

Amid such a situation, India has apparently decided to find an alternative. The Union government has plans to set up textile clusters across the country and Bengal is likely to be in the top five states which will have a contribution in this aspect. Several production units are to be set up for this purpose. The Ministry of Commerce and Industry will act as the nodal agency. Sources said that India’s textile market is presently worth Rs 10 lakh crore and the target is to push it above 20 lakh crore in the next five years. The textile clusters will help establish a robust distribution and supply chain.

Experts in the sector said Kolkata already has a good market in terms of textile. State government officials think that Bengal has already been taking several measures in a bid to make the state into a textile hub. Sources said the Union minister of Commerce Piyush Goyal may soon visit Bengal to hold talks with the state government. The state government reportedly released Rs 32.50 crore for the financial year 2024-25 to facilitate the smooth functioning of infrastructure projects under SIDBI Cluster Development Fund (SCDF).

Some well-known clusters are textile clusters in Metiabruz and handloom clusters in Nadia and

East Burdwan. To promote and increase the sale of ‘Banglar Saree’ across the state, the MSME and Textiles department encouraged opening outlets in all the district headquarters.