Synopsis
India’s textile exports face a potential 20-25% hit in the next six months due to the US imposing 50% tariffs, impacting apparel and made-up goods significantly. The extension of duty-free cotton imports until December 31 offers some relief by improving cost competitiveness. Exporters are exploring alternative markets and strategies to mitigate the impact, while the government assures support.
50% US tariff shock rocks India;₹10 lakh cr market wealth wiped out | Two Sharp with ET As the 50 per cent tariffs imposed by the US come into effect, close to one-fourth of India’s textile exports may be severely impacted in the next six months, with America being the largest export market for the country’s apparel industry and exporters grappling with order cancellations, experts said on Thursday.
However, the extension of duty-free import of cotton by three more months till December 31 is expected to bring some much-needed relief to the domestic textile industry, as it looks to mitigate the impact of the steep tariffs by re-orienting its export strategy and exploring alternate destinations other than the US, by leveraging India’s existing free trade agreements (FTAs).
“We are looking at a hit of at least 20-25 per cent for the next six months, if I am considering some amount of re-orientation to be done because otherwise the figure is 28 per cent of exports, largely apparel and made-ups,” Confederation of Indian Textile Industry (CITI) Secretary General Chandrima Chatterjee told PTI.
The government on Thursday extended duty-free import of cotton by three more months till December 31 to support textile exporters facing steep 50 per cent tariffs in the US. Earlier, on August 18, the Finance Ministry had allowed duty exemption on cotton imports from August 19 till Septemb
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