CITI Calls for Schemes to Drive Investment and Scale in the T&A industry to boost exports towards
US$100 billion target by 2030 The Ministry of Textiles has set an ambitious target of achieving US$ 100 billion in Textile and Apparel (T&A) exports by 2030. Markets like the USA and EU will play a key role in achieving this ambitious target, and hence there is a dire need for the government to come up with various export promotion initiatives to boost T&A exports in these markets.
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Chairman CITI, Rakesh Mehra, said that “the USA accounts for about 27% of India’s T&A exports.
During the last 5 years, India’s exports to the USA have increased at a CAGR of about 3.3%. It would require our exports to grow at a CAGR of about 16% to achieve the visionary target of US$ 100 bn exports by 2030.”
Mehra highlighted the potential opportunities arising from the recent political changes in the USA. “The newly elected President of the USA, Trump, is likely to announce additional tariffs on Chinese products as one of his initial measures upon taking office. Since China is a major supplier of T&A products to the USA, this tariff shift presents a unique opportunity for India to expand its share in the US market,” he said.
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To capitalize on this opportunity, Mehra emphasized the need for strategic marketing initiatives, including trade exhibitions, buyer-seller meetings, and partnerships with US retailer associations. “Enhancing our visibility and presence in the US market through these targeted efforts will be crucial for tapping into this potential,” he added.
In addition to the marketing efforts, CITI called for the continuation of schemes like the Interest Equalization Scheme (IES), and RoDTEP schemes for AA/SEZ and EoU units beyond 31st December 2024 to ensure cost competitiveness of the Indian T&A products.
Furthermore, income-tax relief for MSME manufacturing units was stressed to ensure sustainable growth within the textile sector.
“These policy interventions, combined with focused initiatives aimed at key export markets like the USA, will strengthen India’s overall export strategy and enhance the global competitiveness of the Indian textile industry,” Mehra concluded.
CITI remains optimistic that with the right combination of government support and industry-led efforts, India’s T&A sector will play a pivotal role in achieving the nation’s export aspirations and establishing itself as a global leader in textiles and apparel (T&C).