11th Nov 2024 New Delhi: The Confederation of Indian Textile Industry (CITI) welcomes the election of Donald J. Trump as President of the United States, anticipating that it will bolster India’s textile and apparel (T&A) trade with its largest international market. In 2023, the U.S. accounted for approximately 27% of India’s total T&A exports, underscoring its crucial role in the industry’s global reach.
CITI Chairman Shri Rakesh Mehra highlighted the positive trend in exports to the U.S., noting, “In the current financial year, India’s T&A exports to the U.S. during April-August increased by about 6% compared to the same period last year. This outpaced the growth rates of key competitors, with China at 2%, Vietnam at 0.4%, and Bangladesh recording a decline of -2.2%. India’s enhanced performance signals its growing preference among U.S. buyers and highlights its increasing share in this critical market.”
Shri Mehra emphasized that President Trump’s previous administration focused on reducing dependency on China by diversifying trade sources, a stance that aligns with India’s aspirations to strengthen its position in the U.S. market. “With the new administration, the Indian T&A industry is optimistic about expanding its role as an alternative supplier to China,” he stated.
However, a significant barrier remains in the form of high tariff rates, which for certain apparel categories can reach up to 32%. This, according to Shri Mehra, restricts India’s ability to further increase its market share.
“CITI is hopeful that the new government will work closely with India to facilitate revisions in tariffs, thus positioning India as a key supplier of quality textile and apparel products to the U.S. This could catalyze a new phase in India-U.S. textile trade relations, providing a valuable alternative to China for American retailers and consumers alike” cited Shri Mehra.
