India's Textile Exports in Peril as US Tariffs Cast Doubt on 30% Trade

Speaking to ANI in an interview, Chandrima Chatterjee, Secretary General of the Confederation of Indian Textile Industry (CITI), presented these concerns, noting that while exporters previously managed the impact through rate negotiations, pessimism is now affecting the January-March quarter.

"But this quarter, that is January, March, is where the pessimism is now finally seeping in, because in that quarter....there was a lot more hope that we are going to break through the India-US negotiations....since that has not happened, there is some more pessimism now, but it is a very important market. 30% largely of our textile and apparel trade is today under doubt"

Addressing the potential for an India-US trade deal, Chatterjee mentioned that industry bodies and councils have demonstrated a clear intent to be a strong partner. She noted that while both sides desire a resolution, recent signals of additional tariffs on India have hampered optimism.

"We have shown all our intent to be a good partner, and we look forward to the US side to reciprocate that. The industry at both ends want this to get resolved. We have had a very old ties with US. It's an important market for garments, low and mid end garments and made ups, but I think it's still a very speculative situation," she said.

Despite these challenges, the industry showed some resilience with export estimates up to November indicating a 12 per cent increase, though she cautioned that shifting 30 per cent of the market cannot happen overnight.

"We showed some increase, around 12% increase we could show, which I think is an indication that the industry is learning to diversify. Of course, diversification of 30% of your market cannot be done overnight. In fact, yesterday we, the parliamentary standing committee, had a meeting with senior industry people in Coimbatore where the matter was discussed."

Chatterjee noted that CITI conducted surveys over the last two quarters to monitor the impact of US tariffs. "CITI has been doing surveys for the last two quarters as to how the US tariff issue is panning out for the businesses, and we surely see a lot of pressure on them," she stated. She observed that trade looks dismal from January, necessitating measures to ensure cost competitiveness.

Speaking about the upcoming budget, Chatterjee noted that the industry is seeking an expansion in the scope of financial and export-related support. She emphasized the need for incentives to cover the entire value chain, including yarn and fabric suppliers, rather than just direct exporters. She said that the pressure on prices is being felt across the textile sector, making broad-based credit incentives essential.

- ANI