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India's Textile Battle: How New Delhi Fights US Tariff Impact on Exports

The Indian government is actively talking to textile exporters to understand how US tariffs are affecting their business. They've laid out a full plan that involves negotiating with the US, offering financial help to exporters, and tweaking domestic policies. This includes things like changing incentive schemes and making it easier to get raw materials. Officials are keeping a close watch on export numbers to see how the sector is performing.

Key Points: India Assesses US Tariff Impact on Textile Exports with Exporters

  • Government holds regular consultations with exporters and MSMEs to gauge US tariff challenges
  • Strategy includes pursuing a bilateral trade agreement and new free trade deals
  • Financial relief measures involve RBI schemes and GST reforms to boost demand
  • Export promotion includes PLI scheme revisions and duty exemptions on raw cotton
2 min read

Govt says in regular consultation with textiles exporters to assess US tariff impact

The government is consulting exporters and implementing a multi-pronged strategy, including trade talks and financial relief, to counter US tariff impacts on textiles.

"The strategy encompasses intensive engagement with the US government for a mutually beneficial India-US Bilateral Trade Agreement - Pabitra Margherita, Minister of State for Textiles"

New Delhi, Dec 20

The government has said it is in regular consultation with exporters, including MSMEs, across different states to assess the impact of US tariff on textiles and apparel exports and other challenges, and continues to work to mitigate the impact of the US tariff measures on Indian exports through a comprehensive multi-pronged strategy.

According to Minister of State for Textiles, Pabitra Margherita, the strategy encompasses intensive engagement with the US government for a mutually beneficial India-US Bilateral Trade Agreement (BTA), immediate relief through Trade relief measures of RBI, Credit Guarantee Scheme for Exporters, enhancement of domestic demand through next generation GST reforms, Export Promotion measures such as the new Export Promotion Mission which provide support and assistance to our exporters and pursuing FTAs with new countries and better utilisation of existing FTA.

"Other measures include extension of the Export Obligation period under the Advance Authorisation Scheme, revision in the PLI Scheme for MMF Apparel, MMF Fabrics and Technical Textiles to ease entry and investment norms, exemption of import duty on cotton up to 31.12.2025 to ease of raw material availability," Margherita said in a written reply to a question in Rajya Sabha.

The government is also administering the two remission schemes of Rebate of State and Central Taxes and Levies (RoSCTL) for Apparel/Garments and Made-ups and the Remissions of Duties and Taxes on Exported Products (RoDTEP) Scheme for other textiles products.

Further, the Ministry is in regular consultation with exporters, export promotion councils (EPCs) and all other stake holders including MSMEs to assess the impact of US tariff on India's textiles & apparel export and other challenges, the minister informed.

India’s exports of textiles and apparel (excluding handicrafts) stood at $32,560.04 million during January to November 2025, registering a growth of 0.26 per cent over the corresponding period of the previous year.

The minister further stated that the government is regularly monitoring India’s export of Textile and Apparel including Handicrafts to United States and other countries in the world and tracking of the impact of US tariffs on all segments of the textile sector.

- IANS

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Reader Comments

S
Shreya B
Good to see regular consultations mentioned. But the growth rate of just 0.26% shows how much pressure the sector is under. The PLI scheme revision and duty exemption on cotton are positive, but implementation on the ground needs to be faster. Our weavers need support now.
M
Michael C
As someone working in trade, the "multi-pronged strategy" sounds comprehensive on paper. The key will be the FTA negotiations and the "next generation GST reforms" to boost domestic demand. Simplifying GST for the entire textile chain could be a game-changer.
P
Priyanka N
The RoSCTL and RoDTEP schemes are crucial for maintaining competitiveness. However, I respectfully disagree with the focus being only on mitigating US impact. We should aggressively diversify to EU, UAE, and Australia through the FTAs mentioned. Don't put all eggs in one basket!
A
Aman W
Finally some action! My uncle runs a small garment unit. The liquidity crunch due to delayed payments and now tariffs was killing his business. Hope the RBI trade relief measures and consultations with MSMEs translate into quick, easy-to-access credit. 🤞
K
Kriti O
The exemption of import duty on cotton is a big relief. But long-term, we need to improve our own cotton yield and quality to reduce dependency. Also, promoting technical textiles and MMF as per the PLI scheme is the right way forward. Jai Hind!

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