West Asia unrest adds fresh strain on textile exports: CITI

Industry body cites logistics and cost pressures.

Confederation of Indian Textile Industry (CITI) has expressed concern over the evolving situation in West Asia, noting that a substantial share of India’s textile and apparel exports is destined for the region. The industry body said it is closely monitoring developments and hopes for an early resolution to restore normal trade conditions.

CITI welcomed the assurance from Indian authorities to support uninterrupted EXIM logistics and limit any adverse impact on the country’s trade flows. The UAE remains a critical destination, ranking as the fourth-largest market for India’s textile and apparel exports in 2024, after the US, the EU and Bangladesh.

“Coming in the backdrop of the continuing uncertainty on the US tariffs issue and the recent reduction in the rates under the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme, the tumultuous developments in West Asia have further added to the challenges faced by Indian textile and apparel exporters,” said Shri Ashwin Chandran, Chairman, CITI.

“Considering the narrow margins under which textile and apparel exporters operate, any escalation in the cost of logistics and insurance due to the West Asia scenario puts them in a very tight spot, affecting their ability to meet contractual obligations besides significantly raising operating costs,” he added.

He noted that while it is premature to assess the full impact, prolonged instability could hamper exporters’ diversification efforts. Chandran also described the stakeholder consultation convened by the Department of Commerce on March 2 as reassuring, reflecting the Government’s continued support for industry.

The textiles and apparel sector, India’s second-largest employer, had already faced setbacks in late 2025 following the imposition of a steep 50 per cent US tariff on Indian goods from August 2025 to early February 2026.