US Tariffs Loom Over India's Textile Exports: Industry Calls for Government Action

The Confederation of Indian Textile Industry (CITI) expresses concern over the US imposing a 25% tariff on Indian textile exports, effective August 7. CITI urges the government to aid exporters by ensuring competitive raw material prices. Lower US tariffs for rivals like Bangladesh worsen India's competitive stance.

The Confederation of Indian Textile Industry (CITI) has voiced significant concerns over the newly announced 25% tariff by the United States on Indian textile and apparel exports. This move, set to take effect from August 7, threatens to severely impact the sector, which heavily relies on the US market.

The announcement, made by US President Donald Trump, not only challenges India's export competitiveness but also highlights the need for government intervention. Rakesh Mehra, CITI Chairman, emphasized the necessity for the government to ensure the availability of raw materials at globally competitive rates to help domestic exporters remain resilient.

Compounding the challenge, the US has reduced tariffs for competing nations like Bangladesh, Indonesia, and Vietnam, further straining India's position in the international market. With a substantial target of $100 billion in textile exports by 2030, the industry hopes for the early establishment of a fair bilateral trade agreement with the US.

(With inputs from agencies.)