India's Textile Industry Seeks Government Aid Amidst Steep U.S. Tariff Hike
With the imposition of a 50% tariff on Indian textiles by the U.S., the Confederation of Indian Textile Industry (CITI) urges government actions to alleviate the industry’s burden, stressing the threat to jobs, foreign exchange earnings, and the national export target of USD 100 billion by 2030.
- Country:
- India
The United States is preparing to levy a substantial 50% tariff on Indian textile and apparel exports starting August 27, prompting the Confederation of Indian Textile Industry (CITI) to call for immediate government intervention. CITI Chairman Rakesh Mehra highlights the urgency of government support through fiscal measures and policy changes to offset potential repercussions.
Beyond just the immediate economic impact, Mehra warns of significant consequences for India's textile and apparel sector, which contributes around 2% to the nation's GDP and supports extensive employment. With the U.S. being a primary market, accounting for nearly 28% of India's textile exports, the tariff threatens the industry's USD 100 billion export target for 2030.
Despite the efforts of Indian textile companies to diversify and reduce reliance on the U.S. market, Mehra emphasizes the time and challenges involved in establishing new markets. Meanwhile, India's recent Comprehensive Economic and Trade Agreement with the UK could offer some respite by leveling the duty field in the UK, expected to come into effect by 2026.
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