Textile and attire exporters recommend discount in tariff with the U.S.

As per CITI, U.S. is the one largest export vacation spot for Indian textile and attire sector.

Most textile and attire export associations have advised to the federal government to go in for discount of tariff or zero-for-zero commerce settlement with the U.S.

The Attire Export Promotion Council stated the tariff levied by the U.S. on textiles and attire ranges from 2% to 32%. Discount in tariff is not going to have an effect on Indian exporters, stated AEPC’s secretary common Mithileshwar Thakur.

In accordance with the Confederation of Indian Textile Business (CITI), the U.S. is the one largest export vacation spot for Indian textile and attire sector, contributing to twenty-eight.5% of the full T&A exports between January and November final yr.

For the U.S., China stays the dominant provider with a 25.6% share and India is the third largest provider with 10.8% share. Nonetheless, whereas the U.S. imports from China declined at a CAGR of 9.4% over the past 5 years, imports from India have grown at a CAGR of 9.1% throughout the identical interval. In 2024, the U.S. T&A imports from India stood at about $10.8 billion, whereas exports by the U.S. to India have been value $0.41 billion.

India primarily imports fibre merchandise from the U.S., with cotton making up 50.6 % of whole U.S. T&A exports to India. India’s exports to the U.S. are dominated by attire and residential textiles, accounting for 81.5% of whole shipments.

India ought to discover a zero-for-zero commerce settlement with the U.S. for T&A merchandise with mandatory safeguards for delicate merchandise. It will create a degree taking part in discipline for Indian exporters towards Vietnam, which advantages from obligation concessions. With diminished tariffs, India’s T&A exports to the U.S. might surge to $16 billion inside the subsequent three years, the CITI stated.

In accordance with the Cotton Textiles Export Promotion Council (Texprocil), the tariffs might be diminished to equal the U.S. tariff for T&A. “The commerce stability is in India’s favour. Indian textiles can acquire so much from discount or zero-for-zero settlement. India can also be exploring free commerce settlement with the U.S. So we have to wait and see,” stated Siddhartha Rajagopal, Texprocil’s Govt Director.