Trade body urges textile export relief as US pauses tariffs

CITI has urged the Indian government to consider implementing an interim Textile Exports Protection Scheme.

The Confederation of Indian Textile Industry (CITI) has stated that the 90-day relief in US reciprocal tariffs will offer temporary respite to Indian textile and apparel exporters who were preparing for increased tariff barriers. The US government has introduced a reduced reciprocal tariff rate of 10 per cent—above existing duties and charges—for countries other than China during this period.

This short-term relief is expected to ease immediate pressure on Indian exporters. However, CITI believes this measure is only a temporary solution and highlights the need for the Indian government to engage more intensively with the US administration to establish a more permanent and mutually beneficial trade arrangement.

The United States continues to be India’s largest market for textile and apparel exports. In 2024, India exported textile and apparel goods worth $10.5 billion to the US, accounting for 28.5 per cent of its total exports in this sector. Given the sector’s slim profit margins, any additional tariff burden could significantly impact exporters.

CITI has urged the Indian government to consider implementing an interim Textile Exports Protection Scheme. Such a scheme would help cushion exporters against the financial strain posed by tariff fluctuations and provide some stability during the on-going period of global trade uncertainty.

The current trade tensions between the US and China have opened strategic opportunities for India. With the US seeking to reduce its dependence on Chinese suppliers, India is well-positioned to become a reliable alternative. However, capitalizing on this potential will require strategic diplomacy and sustained efforts to secure a stable and favourable tariff framework.

Over the past five years, India has consistently remained a preferred sourcing destination for US buyers in the textile and apparel segment.