Is the Government Consulting Regularly with Textiles Exporters to Assess the Impact of US Tariffs?
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Synopsis
The Indian government is actively engaging with textiles exporters, including MSMEs, to assess the impacts of US tariffs. They are implementing a multi-faceted strategy to mitigate these effects while promoting growth in the textiles and apparel sectors.
Key Takeaways
- The Indian government is in regular consultation with exporters to assess the impact of US tariffs.
- A comprehensive strategy is being implemented to mitigate challenges in the textiles sector.
- Initiatives include negotiations for a Bilateral Trade Agreement and various financial support schemes.
- India’s textiles and apparel exports have shown a slight growth in recent months.
- The government continues to monitor the effects of US tariffs on the textile industry.
New Delhi, Dec 20 (NationPress) The Indian government has announced that it is actively engaging with exporters, including MSMEs, from various states to evaluate the repercussions of US tariffs on textiles and apparel exports along with other challenges. Efforts are ongoing to alleviate the effects of US tariff measures on Indian exports through a detailed, multi-faceted approach.
As stated by the Minister of State for Textiles, Pabitra Margherita, this strategy includes extensive negotiations with the US government aimed at establishing a mutually advantageous India-US Bilateral Trade Agreement (BTA), immediate relief via Trade Relief measures from the RBI, and a Credit Guarantee Scheme for Exporters. Additionally, the government is focused on boosting domestic demand through next-generation GST reforms, implementing new Export Promotion measures such as the Export Promotion Mission which offers support to our exporters, and pursuing FTAs with new nations while enhancing the use of existing FTAs.
Other initiatives include extending the Export Obligation period under the Advance Authorisation Scheme, revising the PLI Scheme for MMF Apparel, MMF Fabrics, and Technical Textiles to simplify entry and investment regulations, as well as an exemption from import duty on cotton until December 31, 2025 to improve raw material accessibility, Margherita noted in a written response to a query in the Rajya Sabha.
The government is also managing two remission schemes: Rebate of State and Central Taxes and Levies (RoSCTL) for Apparel/Garments and Made-ups, and the Remissions of Duties and Taxes on Exported Products (RoDTEP) Scheme for other textile items.
Moreover, the Ministry is consistently consulting with exporters, Export Promotion Councils (EPCs), and all relevant stakeholders, including MSMEs, to evaluate the impact of US tariffs on India’s textiles and apparel export sectors along with other challenges, the minister conveyed.
During the period from January to November 2025, India’s textiles and apparel exports (excluding handicrafts) were valued at $32,560.04 million, reflecting a growth of 0.26 percent compared to the same timeframe in the previous year.
The minister further emphasized that the government is continuously monitoring the export of textiles and apparel, including handicrafts, to the United States and other global markets while assessing the influence of US tariffs on all segments of the textile industry.
Point of View
We recognize the significant role of the Indian government in engaging with exporters to navigate the challenges of US tariffs. This proactive approach aims to foster resilience within the textiles sector, ensuring that exporters are supported amid global trade fluctuations. Our commitment remains to advocate for the interests of the nation and its economy.
NationPress
20/12/2025
Frequently Asked Questions
What measures is the Indian government taking to support textiles exporters?
The government is implementing a multi-faceted strategy that includes negotiations for a Bilateral Trade Agreement with the US, financial support through various schemes, and enhancing domestic demand through reforms.
How has the US tariff impacted India's textiles and apparel exports?
The government is assessing the impacts of US tariffs and has reported a modest growth of 0.26% in exports during the January to November 2025 period compared to the previous year.
What are the key initiatives under the government’s strategy?
Key initiatives include extending the Export Obligation period, revising the PLI Scheme, and providing exemptions on import duty for cotton until December 2025.
