New Delhi – India has launched its first countermeasure to US President Donald Trump’s 50% tariff on Indian goods, announcing a dedicated outreach strategy to expand textile exports in 40 major global markets, including the UK, Japan, South Korea, Germany, France, Canada, Australia, and the UAE.
Diversification Strategy
Officials said the aim is to position India as a reliable supplier of sustainable, high-quality textiles while reducing dependence on the US market. Export Promotion Councils (EPCs) and Indian missions abroad will lead the drive, mapping opportunities, connecting regional clusters like Surat, Tirupur, Panipat, and Bhadohi, and showcasing Indian products at trade fairs and exhibitions.
“India’s exports are diversified, and we are not overly dependent on the US. Some units may take a hit, but there is no distress signal for the sector as a whole,” an official told TOI.
Why Textiles?
The US tariffs, which took effect on August 27, hit multiple sectors including textiles, gems and jewellery, seafood, footwear, chemicals, and machinery. But textiles remain a focal point since the global textile and apparel import market is worth $800 billion annually. India currently holds a 4.1% share—well behind competitors like Bangladesh and Vietnam—highlighting the room for growth.
Industry Concerns
The Apparel Export Promotion Council (AEPC) warned that the additional duties have created a 30–31% cost disadvantage for Indian exporters compared to regional rivals. “The industry could absorb the earlier 25% tariff, but the hike to 50% has effectively pushed India out of the US market,” said AEPC Secretary General Mithileshwar Thakur.
He added that regaining lost buyers will be difficult once they shift to cheaper suppliers. However, he stressed that India is accelerating talks on free trade agreements (FTAs), particularly with the UK and EFTA nations, to cushion the impact.
Government’s Next Steps
The commerce ministry will meet exporters from textiles, chemicals, and jewellery this week to discuss strategies. Work is also underway on the Export Promotion Mission (Budget 2025-26), which aims to serve as a long-term diversification plan.
Officials remain confident that India’s resilience, combined with new trade agreements, will help cushion the blow of Washington’s tariff escalation.
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