Textile Sector's Iran War Buffer: India's Bold Measures

India's textile industry faces never seen before multiple global headwinds from the Iran-US war, with Hormuz Strait disruptions driving up freight costs by 30% and ballooning insurance rates. In response, the government has rolled out the RELIEF scheme—a robust ₹497 crore package under the Export Promotion Mission—to safeguard exporters. Today government  has announced extending of The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme extending  till Sep., 2026. Citation: F2F & CNBC 18

Know More
Starting April 1, 2026, the Indian government has granted a one-year special customs duty relief for Special Economic Zones (SEZs) to sell products domestically at lower rates until March 31, 2027, alleviating pressures from global trade disruptions. This measure allows SEZ manufacturers to sell with reduced duties, supporting unused capacity and enhancing local competitiveness. Citation. CNBC 18/ PIB.
To ensure unhindered exports amid Middle East conflicts, the Government of India announced on April 2, 2026, a full customs duty exemption on critical petrochemical products until June 30, 2026. This temporary relief supports 41 categories, including plastics, textiles, packaging, chemicals, and pharmaceuticals, aimed at mitigating supply disruptions. Citation: YouTube

Join our group 

Key pillars include full ECGC war-risk coverage at zero extra cost for shipments between February 14 and March 15, protecting vital Gulf routes. Logistics subsidies reroute cargo via the Cape of Good Hope, bypassing conflict zones, while an inter-ministerial task force—launched March 2—tracks impacts like Tiruppur's ₹15,000 crore order losses.

Join our community

Complementing this, the National Fibre Scheme ramps up domestic man-made fiber production, shielding against oil price volatility. These targeted interventions empower MSMEs, avert cancellations, and restore export momentum—transforming crisis into opportunity for resilient growth. CITATION: Linkedin
CREDITS: The text has been in parts taken from sources with due citations given wherever applicable.

Visit for more