US tariff proposal poses 'serious threat' to Indian textile exports, forced labour allegations 'completely false': CITI Chairman
Coimbatore, June 3
As US proposed fresh tariffs on 60 countries over export of goods made with forced labor including India, that does not have a reciprocal trade agreement with the US, Ashwin Chandran, Chairman of the Confederation of Indian Textile Industry, termed the move a "serious threat" to India's textile and apparel sector while rejecting the allegations as "completely false" and "unfair."
Speaking to ANI at Coimbatore, Chandran said the United States remains the biggest export destination for India's textile and apparel industry.
"US is the single largest market out of our country's total USD 36 billion dollars of exports," he said, adding that "almost USD 11 billion dollars went to the US last year."
Highlighting the significance of the US market, Chandran said, "this is a serious threat for Indian textile and apparel industry. From the industry side, we are countering these allegations or countering this investigation."
He further said, "We have very strongly represented against these allegations and against this investigation."
According to Chandran, any additional tariff on textile exports would negatively impact Indian manufacturers and exporters.
"US is our single largest trading partner. Our exports of USD 36 billion last year, last year we exported USD 36 billion in textiles and clothing from India. Out of this, USD 11 billion, about 40% was going to the US market," he said.
"So whether the tariff is 10 per cent, 12 per cent, 13 per cent, 14 per cent, 15 per cent, 20 per cent, any tariff will definitely hurt Indian textile exports and Indian textile companies will suffer losses," he added.
Chandran also warned that losing export orders could have long-term consequences for the industry.
"Indian textile and apparel industry was very badly affected, because once you lose customers, it is very difficult to gain back the customers in a short period of time," he said, noting that "textiles is a seasonal industry."
Explaining the impact of order cancellations, he said, "If you lose orders for one season, then that entire 3 or 4 months, you will lose the business and therefore your production will be severely affected."
He added that many companies had offered discounts to retain buyers. "Various companies in order to retain their customers, they have given discounts anywhere between 15 to 25 per cent discounts companies have given to retain their customers," he said.
Rejecting the allegations of forced labour, Chandran stated, "These allegations are completely unfair, completely false."
He said labour reforms and awareness initiatives had significantly improved industry practices. "In our industry, in the organized sector, this child labor or bonded labor, now in the organized sector, there are no such instances," he said, adding that global brands and retailers regularly conduct stringent audits of suppliers.
When asked about whether Oman's CEPA will be beneficial for the Indian textile industry, he said "We are dependent on the US and EU,"
"We are trying to diversify our exports and enter new markets. So, in this effort, Oman, New Zealand, such trade agreements are beneficial," he added.
— ANI
Reader Comments
Honestly, we should diversify our export markets. Relying on US for 40% of textile exports is risky. Oman and New Zealand deals are good but we also need to strengthen trade with Africa and Southeast Asia. But those forced labour allegations are baseless indeed.
I work in a textile unit in Surat. We have proper wages, safety measures, and even factory audits by international brands. These allegations are completely unfair and politically motivated. The US should verify facts before imposing tariffs. Our workers' livelihoods are at stake. 🇮🇳
As someone who works in global sourcing, I can confirm Indian mills are among the most compliant. While some small units may have issues, the organized sector is heavily audited. But the CITI chairman is right - once customers go elsewhere, it's hard to get them back. This is a serious threat.
The forced labor allegations are concerning, but India should also introspect. There have been reports about bonded labor in some garment factories. Instead of just denying, we should ensure all units - especially small ones - follow labor laws. Only then can we counter such allegations strongly.
Our textile industry is the backbone of many states like Tamil Nadu, Gujarat, and Punjab. 11 billion dollars to US alone is huge! If they impose tariffs, it's not just companies but millions of weavers, dyers, and tailors who will suffer. Hope our government negotiates strongly at WTO. 🤞
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