New Delhi, August 1: The Confederation of Indian Textile Industry (CITI) has expressed serious concern over the United States’ decision to impose a 25% tariff on Indian textile and apparel exports starting August 7. CITI has called on the Indian government to extend support to exporters who will face losses due to the new duty.
US President Donald Trump announced the tariff hike earlier this week, a move that has sent ripples through India’s textile sector, particularly those dependent on exports to the American market.
CITI Chairman Rakesh Mehra warned that India’s exporters will find it increasingly difficult to remain competitive, especially after the US reduced tariffs for rival nations. As per the revised structure, the US will now impose only 20% on Bangladeshi goods, and 19% on products from Indonesia and Cambodia, while Vietnam faces a 20% rate.
India is currently the fourth-largest exporter of textiles and apparel to the US, following China, Vietnam, and Bangladesh. The US remains India's largest market in this sector, and the new tariff could significantly hinder India's target of reaching $100 billion in textile exports by 2030.
CITI has urged the Indian government to ensure the availability of raw materials at globally competitive prices and speed up the implementation of the proposed Bilateral Trade Agreement (BTA) with the US.
“India must always safeguard its national interests while entering any trade agreement,” Mehra emphasized, urging swift policy action to protect millions of livelihoods tied to the textile sector.
