CITI urges govt support as US imposes 25% tariff on Indian textiles

The Confederation of Indian Textile Industry (CITI) feels that the latest US tariff announcement on July 31 has made more difficult what was already a challenging situation for India’s textile and apparel exporters and expects the government to come to the aid of the sector during this trying period.

CITI is of the view that the government facilitating the availability of raw material at internationally competitive prices would prove a valuable support to the textile sector in this regard as it would enable local industry players being better able to compete with their international peers.

The US tariff rate for India has been set at 25 per cent. The US is India’s largest market for textile and apparel exports. During January-May 2025, US imports of textile and apparel from India were valued at $4.59 billion, a rise of more than 13 per cent compared to the same period last year when the figure stood at $4.05 billion, CITI said in a release.

The new US rate for Bangladesh is 20 per cent. The latest US tariff rate for Indonesia and Cambodia are 19 per cent each. The tariff rate for Vietnam is 20 per cent. Currently, China is the biggest exporter of textiles and apparel items to the US, followed by Vietnam, India, and Bangladesh.

“The latest US tariff announcement following which the tariff rates have been substantially reduced for many countries, including Bangladesh, against whom we compete for a larger share of the US market will compound the difficulties for India’s textile and apparel exporters as we will be handicapped bxy a severe duty disadvantage,” CITI chairman Rakesh Mehra said.

“Through its business-friendly policies and steps, the government has ensured that India is now the world’s fastest-growing large economy and firmly on track to become the 3rd largest global economy soon. The recent signing of the FTA with the UK is shining proof of the government’s strong commitment to the Viksit Bharat (developed India) goal. It is this approach which makes us hopeful about the government coming to our aid to deal with the US tariff challenge,” Mehra added.

India has set itself a target of achieving textile exports worth $100 billion by 2030.

Mehra said CITI looks forward to the proposed bilateral trade agreement (BTA) between India and the US being in place soon. “We totally agree with the government that India should always protect its national interests while signing any trade deal to ensure that it is fair, balanced, and equitable for all the parties involved in the agreement,” Mehra added.

ALCHEMPro News Desk (HU)