The US tariff hike of 25 per cent poses a substantial challenge for Indian exporters, especially in the textile and apparel sector, which alone accounts for over $10 billion of India’s exports to the US. The pressure is further compounded by high domestic interest rates, global competition, and the pending rollout of the Rs 22.50 billion Export Promotion Mission.
Strategic priorities for the textile and apparel industry
- Urgent policy activation – Accelerated implementation of the Export Promotion Mission with WTO-compliant incentives, such as interest subvention and trade facilitation, is crucial to shield exporters from the immediate impact of tariffs.
- Competitive credit access – While competing nations enjoy borrowing rates as low as 2–4.5 per cent, Indian exporters face 8–12 per cent. Affordable trade finance must be a priority to prevent margin erosion.
- Market diversification – Beyond the US, exporters should aggressively target UK, Europe, the Middle East, and emerging economies to mitigate single-market risks.
- Technology and sustainability – Value-added innovation in textiles, digital supply chain integration, and sustainable production practices will help build resilience and secure premium positioning in global markets.
- Collaborative solutions – Industry associations and policymakers must jointly develop export-friendly reforms and streamline logistics to reduce cost burdens on exporters.
Turning challenge into opportunity
This is a defining moment for the textile and apparel sector. By aligning government support with industry innovation, India can transform this short-term disruption into a long-term opportunity to become a more competitive and diversified global sourcing hub.
This view is presented by Dr Mukesh Kansal, Chairman, CTA Apparels