Countries importing textile products from Sri Lanka have
now started looking toward Indian exporters as Sri Lanka continues to face one
of its worst economic crises. Tea estates of southern India and Assam are also
witnessing a hike in overseas orders as the export demand has shifted to India
from Sri Lanka. Garments and tea are the major exports from Sri Lanka.
According to an Economic Times report, Sri Lanka exports $5.42 billion worth of
garments to the global markets annually.

Also Read | Sri Lanka: Life-saving drugs run out as health infra nears collapse

Countries that were earlier importing from Sri Lanka are
contacting India as Sri Lanka is under its worst economic crisis. Some orders
have already been given to companies in the Tirupur district of Tamil Nadu.
Tirupur is the hub of the textile industry in Tamil Nadu, UP Singh, Secretary
at the Ministry of Textile, told ANI.

Singh stated that last financial year’s textile exports
were nearly USD 43 billion and the current year’s target has been set for 100
billion. Currently, India produces more than 340 lakh bells of cotton but
consumption is going to be more than production due to the order diversion from
Sri Lanka due to the economic crisis.

Also Read | Sri Lankan protesters mark new year near president’s office

Textile Secretary added that countries like Bangladesh
and Vietnam have no import duties for importing cotton from Australia, Brazil
and South Africa. On the other hand, Indian investors had to pay 11% import
duty leading to high input costs which makes them uncompetitive. So importers
were seeking import duty exemption from the government. Vietnam, Bangladesh,
Sri Lanka and Pakistan were gaining the advantage in European markets while
Indian exporters suffered.

Also Read | Sri Lanka’s Opposition signs no-trust, impeach motion amid worsening crisis

“Our exporters have to pay 9.5% export duty which
these countries do not have to pay. Now adding these 11% import duty and 9.5%
export duty on cotton, it becomes very difficult for our textile exporters to
compete with such countries. Since now we do not have to pay import duty on
cotton, this will certainly make our exporters more competitive,”
emphasized the Textile Secretary.

Talking to ANI, A Sakthivel, President, Federation of
Indian Exporters Organization said buyers have now started making queries with
Tirupur Exporters Association and other sources in India as the situation in
Sri Lanka is critical. This is an opportunity because good discussions are
happening and some orders are expected to divert from Sri Lanka to India.

Also Read | Sri Lanka PM Mahinda Rajapaksa ready for talks as protests near president’s office

Indian exporters are receiving queries for woven items,
shirts, t-shirts and some baby garments from countries like the United Kingdom
and European Union countries.

Sri Lanka is reeling under its worst economic crisis
since independence with food and fuel crunches, rising prices and power cuts
affecting a large population in the island country.

Sri Lanka’s economy has been struggling since the
beginning of the COVID-19 pandemic, leading to the crash of the tourism
industry.

Also Read | Sri Lankan legend wants players to leave IPL, support country during crisis

The country is also facing a foreign exchange shortage,
which has affected its capacity to import food and fuel. The shortage of essential
products forced the Sri Lankan government to seek support from friendly
countries.