US Tariffs: A Threat to India's Textile Exports
US tariffs are poised to have a significant impact on nearly 25% of India’s textile exports over the next six months. Experts estimate that this could result in a decline of 20-25% in exports, particularly affecting the apparel and made-ups sectors. Chandrima Chatterjee, secretary general of the Confederation of Indian Textile Industry, highlighted the critical nature of this situation, which has already begun to affect traders and exporters.
In a letter addressed to Prime Minister Narendra Modi, Sudhir Sekhri, Chairman of the Apparel Export Promotion Council, expressed grave concerns about the competitiveness of Indian products in the US market. He noted that the recent tariff hikes would hurt both exporters and consumers, leading to order cancellations and financial losses for many businesses. To adapt to these challenges, the council is actively exploring alternate markets and strategies.
US President Donald Trump’s imposition of an additional 25% tariff on Indian exports has raised the duty on certain shipments to as high as 50%, making it one of the most stringent tariff regimes globally. This move is expected to severely affect India’s exports, particularly in textiles, gems, jewelry, and other sectors, posing a threat to thousands of small exporters and jobs.
In response to these challenges, the Indian government has taken steps to support textile exporters. Recently, the duty-free import of cotton has been extended for three more months, until December 31. This extension is expected to provide relief to exporters who have been struggling with rising cotton prices and order fulfillment delays. Chatterjee stated that the longer window for cotton imports will benefit new orders, helping to stabilize the industry during this turbulent period.
As of 2024-25, India’s textile and apparel sector is projected to reach a size of $179 billion, with a domestic market valued at $142 billion and exports worth $37 billion. These developments underscore the importance of the textile sector to the Indian economy and highlight the urgent need for strategic measures to navigate the evolving landscape of global trade.
