The US tariff hike of 25% poses a substantial challenge for Indian exporters, especially in the textile and apparel sector, which alone accounts for over $10 billion of India’s exports to the US. The pressure is further compounded by high domestic interest rates, global competition, and the pending rollout of the ₹2,250 crore Export Promotion Mission.
Urgent Policy Activation – Accelerated implementation of the Export Promotion Mission with WTO-compliant incentives, such as interest subvention and trade facilitation, is crucial to shield exporters from the immediate impact of tariffs.
Competitive Credit Access – While competing nations enjoy borrowing rates as low as 2–4.5%, Indian exporters face 8–12%. Affordable trade finance must be a priority to prevent margin erosion.
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Market Diversification – Beyond the US, exporters should aggressively target UK, Europe, the Middle East, and emerging economies to mitigate single-market risks.
Technology and Sustainability – Value-added innovation in textiles, digital supply chain integration, and sustainable production practices will help build resilience and secure premium positioning in global markets.
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Shielding Textile & Apparel Exports in Tariff Turbulence
Collaborative Solutions – Industry associations and policymakers must jointly develop export-friendly reforms and streamline logistics to reduce cost burdens on exporters.
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Turning Challenge into Opportunity
This is a defining moment for the textile and apparel sector. By aligning government support with industry innovation, India can transform this short-term disruption into a long-term opportunity to become a more competitive and diversified global sourcing hub.
CREDITS: Dr. Mukesh Kansal, Chairman, CTA Apparels
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