Nonetheless, the extension of duty-free import of cotton by three extra months until December 31 is predicted to convey some much-needed aid to the home textile business, because it seems to mitigate the influence of the steep tariffs by re-orienting its export technique and exploring alternate locations apart from the US, by leveraging India's current free commerce agreements (FTAs).
“We're taking a look at successful of at the very least 20-25 per cent for the subsequent six months, if I'm contemplating some quantity of re-orientation to be performed as a result of in any other case the determine is 28 per cent of exports, largely attire and made-ups,” Confederation of Indian Textile Business (CITI) Secretary Basic Chandrima Chatterjee instructed PTI.
The federal government on Thursday prolonged duty-free import of cotton by three extra months until December 31 to help textile exporters dealing with steep 50 per cent tariffs within the US. Earlier, on August 18, the Finance Ministry had allowed responsibility exemption on cotton imports from August 19 until September 30.
“We're very relieved as a result of the sooner exemption was not benefiting new orders that may be positioned for cotton because it takes a minimal 45-50 days to be shipped. So now this comparatively longer widow will profit the brand new orders,” Chatterjee mentioned.
She emphasised that the cotton import responsibility exemption will impart value competitiveness by decreasing the associated fee differential. “Prior to those exemptions the distinction between the home cotton value and the worldwide bench-mark was 10-15 per cent, that shall be addressed,” the CITI secretary common mentioned. In a letter to Prime Minister Narendra Modi, Attire Export Promotion Council (AEPC) Chairman Sudhir Sekhri mentioned the announcement of fifty per cent reciprocal tariff by the US on Indian imports is a matter of deep concern for the nation's textile and attire business.
“The US is among the largest export locations, and such a steep tariff will severely influence the competitiveness of Indian merchandise within the American market, hurting each exporters and customers,” Sekhri acknowledged.
Nonetheless, he assured all help to the federal government on its stand of defending the pursuits of Indian farmers, dairy business and fishermen.
“Our business is already experiencing the consequences of the tariff hike, with potential losses and order cancellations. We're exploring alternate markets and techniques to mitigate the influence of the US tariffs. We're additionally in lively discussions with the Ministry of Textiles and Ministry of Commerce & Business. In our conferences with the ministers of each the ministries, we've got been assured of their very best help,” Sekhri mentioned.
In 2024-25, the general measurement of the textile and attire sector is estimated at USD 179 billion, comprising a home market of USD 142 billion and exports value USD 37 billion.
