New Delhi: The Confederation of Indian Textile Industry (CITI) on Thursday said that the 90-day relief in US reciprocal tariffs will bring short-term respite to the Indian textile and apparel exporters, who were bracing for higher tariff barriers, urging the government to introduce an interim Textile Exports Protection Scheme.
US President Donald Trump has announced on a 90-day 'pause' on reciprocal tariffs for all but China. During this period, a substantially lower reciprocal tariff of 10 per cent, over and above the existing duties, fees, taxes, exactions or charges applicable, will be in place.
"The temporary relief will bring short-term respite to Indian textile and apparel exporters, who were bracing for higher tariff barriers. However, this measure is only a stopgap. It is crucial that the government of India intensifies its engagement with US counterparts to arrive at a more sustainable and mutually beneficial solution," CITI Chairman Rakesh Mehra said.
Highlighting the importance of the US market, he said that America is the largest destination for Indian textile and apparel exports.
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"While the government is actively pursuing bilateral negotiations for better tariff access, the industry urges the government to consider introducing an interim Textile Exports Protection Scheme," said Mehra.
Such a measure would help mitigate the impact of additional tariff costs, particularly given the wafer-thin margins that textile and apparel exporters operate on, he added.
He further pointed out that the ongoing trade tensions between the US and China present a strategic opportunity for the country.
With the US looking to diversify its sourcing away from China, India has the potential to emerge as a reliable alternative.
“However, this will require proactive diplomacy and a concerted effort to secure a more favourable and stable tariff regime,” he emphasised.
As per the latest data, India exported textile and apparel products worth $10.5 billion to the US in 2024, which accounted for about 28.5 per cent of India’s total textile and apparel exports. In the last five years, India has been a relatively preferred partner for the US in this sector.
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