Tariff Challenges for Textiles

In a  high level meeting chaired  with the leading stakeholders of the textile and apparel industry to take stock of the global situation that is emerging  due to the tariff war initiated by the United States for  evolving a future strategy to deal with it; Giriraj Singh, Union Minister of Textiles along with  the Minister of State for Textiles and the Secretary, Ministry of Textiles underlined  the need for  self-reliance by boosting domestic value addition, advancing sustainable  manufacturing process, strengthening India’s global brand as a supplier of high-quality textiles. It is pertinent to mention that this vision is aligned with the Prime Minister Narendra Modi’s 5F approach-Farm to Fibre to Factory to Fashion to Foreign. The meeting reverberated with the sentiments that India’s textile industry is poised to meet global trade headwinds with resilience, self-reliance, and a renewed focus on export competitiveness. Posing confidence in the healthy position of the Indian textile industry, the stakeholders were positive about the health of the industry. It is pertinent to mention that India is the 6th largest exporter of Textiles & Apparel in the world, with a 4.1% share in Calendar year by 2024. The textile and apparel sector, including handicrafts, contributed 8.63% to India’s total merchandise exports in 2024–25, valued at USD 37.7 billion. While the USA remains India’s largest export market, accounting for 28.97% of textile and apparel exports, it represents only 6% of the overall Indian textile industry, which is valued at USD 179 billion (  Domestic 142  billion USD and Exports 37 billion USD )  . The sector has also witnessed significant growth in domestic demand over the last decade. The Union Minister underscored the need to diversify the export basket, enhance product competitiveness, and tap into new and under-served markets. India has signed 15 Free Trade Agreements (FTAs) with partner countries whose combined textile import demand stands at USD 198.9 billion. He urged exporters to actively explore the European Union market, which collectively imports textiles worth USD 268.8 billion—more than twice the size of the US market. India is actively engaged in FTA negotiations with EU.Giriraj  Singh announced the constitution of four committees, comprising industry representatives, to submit time-bound recommendations on the diversification of the new markets with a focus on fiscal and ease of doing business measures, Structural reforms in the textile value chain, Enhancing cost competitiveness and innovation and a target of USD 100 Billion Exports by 2030.He reiterated that with its inherent strengths, robust industry-government collaboration, and relentless focus on innovation, India’s textile sector is well-positioned to turn current challenges into stepping stones for sustained growth in the global marketplace. The Ministry pledged ongoing collaboration with industry bodies to safeguard India’s trade interests and to develop and implement policies that would effectively mitigate the impact of the enhanced tariff regime. The current state of the textiles industry gives the hope that India will keep contributing to global trade in a healthy manner keeping in view the firm foundations of the industry at home. The US policy of dismantling the existing trade and business structures must be taken in a different way by India. As this will surely lead to an end to the US hegemony and the emergence of new global trade models having roots in an inclusive economy.