Union Textiles Minister Giriraj Singh is scheduled to hold a high-level meeting with industry stakeholders this week to discuss the possible ramifications of US President Donald Trump’s proposal to impose a 25% tariff on India and to get their opinions.
Approximately 25% of India’s total outbound shipments from the textile and clothing industry go to the US, making it the country’s biggest export market.
Since the Government and industry want to do everything in their power to meet the textile export target of US $ 100 billion by 2030, the meeting will also focus on identifying opportunities for India’s textile sector from the UK-India free trade agreement, which was signed last month, and minimising the possible effects of the US tariff announcement.
It would be premature to discuss any measures being considered to support domestic textile exporters in light of the US announcement, according to sources, but the Government wants to hear from the industry now and discuss the opportunities and challenges associated with the UK-India Free Trade Agreement and other untapped markets.
Officials are currently engaged in discussions with the textile industry, following a directive from the minister to convene a meeting with major garment export firms from India. The talks will focus on tapping into opportunities arising from the recently signed UK-India Free Trade Agreement (FTA).
The industry has reportedly set an ambitious export target of US $ 100 billion by 2030 and is actively working toward achieving it. Efforts are being made to diversify the product portfolio and expand into new markets while also consolidating existing ones. Additionally, the Government has announced the Export Promotion Mission to support these objectives.
About half of India’s US $ 86 billion in exports to the US could be affected by the 25% tariff the US imposed on Friday; the other half, which includes petroleum, electronics, and pharmaceuticals, remained free from the charge.
The industries that would be most affected by the 25% tariff include leather and footwear (US $ 1.18 billion), textiles and apparel (US $ 10.3 billion), among others.
