Shielding Textile & Apparel Exports in Tariff Turbulence

by Dr. Mukesh Kansal, Chairman, CTA Apparels

The US tariff hike of 25% poses a substantial challenge for Indian exporters, especially in the textile and apparel sector, which alone accounts for over $10 billion of India’s exports to the US. The pressure is further compounded by high domestic interest rates, global competition, and the pending rollout of the ₹2,250 crore Export Promotion Mission.

Strategic Priorities for the Textile & Apparel Industry 1. Urgent Policy Activation – Accelerated implementation of the Export Promotion Mission with WTO-compliant incentives, such as interest subvention and trade facilitation, is crucial to shield exporters from the immediate impact of tariffs.

2. Competitive Credit Access – While competing nations enjoy borrowing rates as low as 2–4.5%, Indian exporters face 8–12%. Affordable trade finance must be a priority to prevent margin erosion.

3. Market Diversification – Beyond the US, exporters should aggressively target the UK, Europe, the Middle East, and emerging economies to mitigate single-market risks.

4. Technology and Sustainability – Value-added innovation in textiles, digital supply chain integration, and sustainable production practices will help build resilience and secure premium positioning in global markets.

5. Collaborative Solutions – Industry associations and policymakers must jointly develop export-friendly reforms and streamline logistics to reduce cost burdens on exporters.

Turning Challenge into Opportunity This is a defining moment for the textile and apparel sector. By aligning government support with industry innovation, India can transform this short-term disruption into a long-term opportunity to become a more competitive and diversified global sourcing hub.