New Delhi: Hit by the steep 50 per cent tariffs imposed by the US, India’s textile exports declined 12.91 per cent in October, pushing industry bodies to seek relief measures to arrest the fall in shipments, expected to exacerbate in the coming months.
The US is the largest export market for India’s textile and apparel industry. In 2024-25, the overall size of the textile and apparel sector is estimated at USD 179 billion, comprising a domestic market of USD 142 billion and exports worth USD 37 billion. Industry bodies have sought various relief measures from the government to tide over and ameliorate the impact on textile exports.
The Confederation of Indian Textile Industry (CITI) urged the Reserve Bank of India to add spinning, weaving and processing units to the list of “eligible sectors” for the RBI’s Trade Relief Measures announced on November 14.
Meanwhile, the Apparel Export Promotion Council (AEPC) demanded extension of the Interest Equalization Scheme for at least five years; continuation of the Rebate of State and Central Taxes and Levies (RoSCTL) for at least five years to ensure long-term policy stability and creation of a Market Diversification Fund to help exporters access high-tariff markets via trade fairs and buyer-seller meet.
The AEPC has also sought duty-free import of all textile and garment machinery, including sustainable and green manufacturing infrastructure to facilitate faster technology upgradation, among other measures.
“The October decline is on expected lines. The US share of India’s total textile and garments exports is about 30 per cent. The pipeline inventory is still being shipped out, but fresh orders have stopped coming in post-August. We expect the decline in textile and apparel exports to continue and worsen to 15-20 per cent in November and December,” Sanjay K Jain, former Chairman of the Confederation of Indian Industry (CITI) said.
He observed that the recovery of India’s textile and apparel exports is expected only 2-3 months after the proposed India-US bilateral trade agreement (BTA) comes into effect.