Textile Industry Calls for Temporary Export Protection Amid US Tariff Halt
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Synopsis
The Confederation of Indian Textile Industry (CITI) has urged the Indian government to introduce a temporary Textile Exports Protection Scheme following the US's 90-day pause on reciprocal tariffs, which provides short-term relief to exporters amidst potential trade challenges.
Key Takeaways
- India seeks a temporary Textile Exports Protection Scheme.
- 90-day US tariff pause provides short-term relief.
- US is the largest market for Indian textiles.
- Proactive diplomacy is essential for stable tariffs.
- India's textile exports to the US were $10.5 billion in 2024.
New Delhi, April 10 (NationPress) The Confederation of Indian Textile Industry (CITI) stated on Thursday that the 90-day suspension of US reciprocal tariffs will provide immediate relief to Indian textile and apparel exporters, who were preparing for increased tariff challenges, and urged the government to implement a temporary Textile Exports Protection Scheme.
US President Donald Trump has declared a 90-day pause on reciprocal tariffs for all nations except China. During this timeframe, a significantly reduced reciprocal tariff of 10 percent, in addition to existing duties, fees, taxes, and charges, will be enforced.
"This temporary relief offers a short-term solution for Indian textile and apparel exporters, who were anticipating higher tariff barriers. However, this is merely a stopgap measure. It is essential for the Indian government to enhance its dialogue with US officials to achieve a more sustainable and mutually beneficial outcome," stated CITI Chairman Rakesh Mehra.
Emphasizing the significance of the US market, he indicated that the US is the leading destination for Indian textile and apparel exports.
"While the government is actively engaging in bilateral talks for improved tariff access, the industry implores the government to contemplate the introduction of a temporary Textile Exports Protection Scheme," Mehra added.
This initiative would help alleviate the effects of additional tariff costs, especially considering the slim profit margins that textile and apparel exporters contend with, he noted.
He also highlighted that the ongoing trade disputes between the US and China offer a strategic chance for India.
With the US seeking to reduce its dependence on Chinese sourcing, India is poised to become a reliable alternative.
“However, this will necessitate proactive diplomacy and a concerted effort to secure a more advantageous and stable tariff environment,” he emphasized.
According to the latest statistics, India exported textile and apparel products valued at $10.5 billion to the US in 2024, representing approximately 28.5 percent of India’s overall textile and apparel exports.
Over the past five years, India has been a relatively preferred partner for the US in this sector.
