Is the Government Taking Steps to Mitigate US Tariff Impacts on Textiles?
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Synopsis
The Indian government is proactively addressing the impacts of US tariffs on textile exports through a combination of trade agreements, relief measures, and new initiatives aimed at enhancing competitiveness. Discover how these strategies aim to protect and promote India's textile industry.
Key Takeaways
- Comprehensive strategy to mitigate US tariff impacts.
- Focus on bilateral trade agreements and immediate relief.
- Support through Credit Guarantee Scheme and export promotions.
- Establishment of PM MITRA Parks for enhancing competitiveness.
- Significant funding for skill development in textiles.
New Delhi, Dec 12 (NationPress) The Indian government is implementing a comprehensive strategy aimed at reducing the effects of US tariff policies on the nation's textile and apparel exports. This approach involves proactive discussions with the US to establish a bilateral trade agreement, alongside immediate trade relief measures facilitated by the Reserve Bank of India, as stated in an official release on Friday.
The government has introduced a Credit Guarantee Scheme for exporters and is launching various export promotion initiatives, including a new Export Promotion Mission and reforms to the GST system, as outlined by MoS Pabitra Margherita in response to a query in Rajya Sabha on Friday.
The Ministry of Textiles is also actively working towards establishing free trade agreements with various nations, optimizing the use of existing FTAs, and consulting with exporters, export promotion councils, and MSMEs to evaluate and counter the effects of tariffs.
During the period from April to October 2025, India's textiles and apparel exports, including handicrafts, reached $20,401.95 million, reflecting a slight decline of 1.8% compared to $20,728.05 million in the previous year.
Despite challenges related to global tariffs and other external factors, the data suggests that export performance remains stable, as noted by the government.
For the fiscal year 2025, total exports amounted to $37,755.0 million, marking a 5.2% increase from FY24, according to the statement.
Demonstrating resilience and diversification efforts, Indian textile exports showed positive growth in over 100 countries during the April to October period, including the UAE, UK, Germany, Spain, France, Italy, China, Saudi Arabia, Egypt, and Japan.
The impact of reciprocal tariffs on India's textile exports in the global market will be influenced by various factors such as product differentiation, demand, quality, and contractual agreements, the report indicated.
To enhance export competitiveness, the government is setting up seven PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks in states including Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh, and Maharashtra.
Furthermore, the government highlighted the Production Linked Incentive scheme for textiles, which has an approved budget of Rs. 10,683 crore, supporting skill development and R&D programs like SAMARTH, which has successfully trained over 5.40 lakh beneficiaries.
Point of View
The government's approach reflects a commitment to supporting the textile industry amidst global challenges. By actively seeking trade agreements and implementing support measures, India aims to enhance its competitiveness on the world stage, fostering resilience in a crucial sector for economic growth.
NationPress
12/12/2025
Frequently Asked Questions
What measures is the Indian government taking against US tariffs?
The government is pursuing bilateral trade agreements, implementing immediate trade relief measures via the RBI, and launching export promotion initiatives.
How have India's textile exports performed recently?
India's textile and apparel exports reached $20,401.95 million from April to October 2025, showing a slight decline but overall stability.
What are PM MITRA Parks?
PM MITRA Parks are initiatives by the government to establish integrated textile regions aimed at boosting the competitiveness of the textile sector.
How is the government supporting skill development in textiles?
The government has approved Rs. 10,683 crore for the Production Linked Incentive scheme, which supports skill development and R&D in the textiles sector.
Which countries are major markets for Indian textile exports?
India's textile exports have shown positive growth in over 100 countries, including the UAE, UK, Germany, and Japan.
