At the same time, it has reshaped South Asia’s trade landscape, opening a new window of opportunity for Bangladesh in the European market. India’s GSP suspension represents a time-bound opportunity, not a guaranteed gain. With India’s tariff advantage eroded, categories such as basic knitwear, denim, and casual woven garments are more likely to see orders shift toward Bangladesh. Beyond garments, Bangladesh could also benefit in leather and leather goods, home textiles, plastics and packaging, and light engineering products—industries where capacity has been expanding and competitiveness is gradually improving. If the country fails to secure EU GSP+ benefits afterward, it could soon face tariff pressures similar to those now confronting India.

Source: Dhaka Tribune January 26, 2026 17:07 UTC