Government Ramps Up Support for Textiles Amid US Tariff Hike

The government is focusing on supporting industries affected by US tariffs, specifically textiles, under its export promotion mission. The mission includes measures like easy credit schemes and global branding. With new tariffs imposed by the US, India is exploring diversification and increased domestic market focus.

The government is taking decisive action to support sectors severely impacted by recent US tariff hikes, with a particular focus on textiles, under its export promotion mission, industry sources revealed Thursday.

In consultations with exporters from the textiles and chemicals sectors, the commerce ministry discussed the tariffs' impact and potential support measures. As part of the mission, announced in the Budget, the government aims to introduce initiatives like easy credit schemes for MSMEs, e-commerce exporters, overseas warehousing facilitation, and international branding efforts to capitalize on emerging export opportunities.

The newly imposed tariffs, totaling 50%, were activated as a response to India's ongoing purchase of Russian oil, thus raising the stakes for sectors like textiles, chemicals, and machinery in the bilateral trade landscape between India and the US, valued at USD 131.8 billion. In response, exporters urge for fiscal incentives, operational simplification, and diversification into new geographic markets.

(With inputs from agencies.)