The Ministry of Textiles has set the lofty goal of exporting US $ 100 billion worth of textiles and apparel (T&A) by 2030. Markets like the USA and the EU will be crucial to reaching this lofty goal, thus the government must devise a number of export promotion programs to increase T&A exports in these areas.
About 27 per cent of India’s T&A exports go to the USA, according to Rakesh Mehra, chairman of Confederation of Indian Textile Industry (CITI). India’s exports to the United States have grown at a CAGR of roughly 3.3 per cent during the past five years. He stated that in order to reach the goal of US $ 100 billion in exports by 2030, exports would need to expand at a CAGR of roughly 16 per cent.
He emphasised how the current political shifts in the USA could present opportunities. One of Donald Trump’s first actions as president of the United States is probably going to be the announcement of more tariffs on Chinese goods. Given that China is a significant supplier of T&A products to the United States, this tariff change offers India a special chance to increase its market share in the US.
In order to take advantage of this chance, Mehra underlined the necessity of strategic marketing strategies, such as relationships with US store associations, buyer-seller meetings, and trade exhibits.
To guarantee the cost competitiveness of Indian T&A products, CITI has recommended that, in addition to marketing initiatives, programs like the Interest Equalisation Scheme (IES) and RoDTEP schemes for AA/SEZ and EoU units be maintained till December 31, 2024. Additionally, it was emphasised that MSME manufacturing units should receive income-tax relief in order to guarantee the textile industry’s ongoing expansion.
