CITI Urges Government to Boost Textile Exports Amidst Shifting US Tariffs

The Confederation of Indian Textile Industry (CITI) calls for targeted government policies to bolster India’s textile exports, aiming for USD 100 billion by 2030. Chairman Rakesh Mehra highlights opportunities in the US market due to potential tariff shifts under President Trump and stresses the need for strategic marketing efforts and policy support.

The Confederation of Indian Textile Industry (CITI) has urged the Indian government to implement specialized initiatives and policies aimed at driving investment and scaling the Textile and Apparel (T&A) sector. This appeal aligns with India's ambitious goal of reaching USD 100 billion in exports by 2030, with significant roles earmarked for key markets such as the USA and the EU.

CITI Chairman Rakesh Mehra emphasized the importance of the US market, pointing out that it constitutes about 27% of India's T&A exports. Over the last five years, India's exports to the USA have grown at a compound annual growth rate (CAGR) of approximately 3.3%. To meet the USD 100 billion target by 2030, exports must increase at a CAGR of approximately 16%.

Mehra highlighted emerging opportunities due to potential policy changes under the newly elected US President Donald Trump, who is anticipated to impose additional tariffs on Chinese goods. This shift could significantly benefit India by enabling it to capture a greater share of the US market. To seize this opportunity, CITI advocates for strategic marketing efforts, including trade exhibitions, buyer-seller meetings, and partnerships with US retailer associations.

Mehra underscored the need for increased US market visibility through these targeted efforts to unlock potential opportunities. Additionally, CITI stressed the need for policy measures to maintain the cost competitiveness of Indian T&A products. The organization urged an extension of crucial schemes like the Interest Equalization Scheme (IES) and the Remission of Duties and Taxes on Exported Products (RoDTEP) for AA/SEZ and EoU units beyond their expiry on December 31, 2024.

CITI also recommended income tax relief for MSME manufacturing units in the textile sector to ensure sustainable growth. Mehra concluded by saying that these policy interventions, paired with focused initiatives toward major export markets like the USA, will bolster India's overall export strategy and enhance the global competitiveness of the Indian textile industry.

(With inputs from agencies.)