In response to a 50% US tariff, India is launching outreach initiatives in 40 countries to enhance textile exports. With a focus on market diversification, the country aims to increase its market share in a $590 billion import market.
India
-Prakash KL
India
is
set
to
launch
outreach
initiatives
in
40
countries,
including
the
UK,
Japan,
and
South
Korea,
to
boost
textile
exports.
This
move
comes
in
response
to
a
50%
tariff
imposed
by
the
US
on
Indian
products.
Other
target
nations
include
Germany,
France,
Italy,
Spain,
the
Netherlands,
Poland,
Canada,
Mexico,
Russia,
Belgium,
Turkiye,
the
UAE,
and
Australia,
PTI
reported.
The
outreach
aims
to
position
India
as
a
dependable
supplier
of
quality
textiles.
The
strategy
involves
Export
Promotion
Councils
(EPCs)
and
Indian
Missions
collaborating
in
these
countries.
India
already
exports
to
over
220
nations.
However,
these
40
countries
are
crucial
for
diversification.
India
is
launching
outreach
initiatives
in
40
countries,
including
the
UK,
Japan,
and
South
Korea,
to
boost
textile
exports
after
a
50%
US
tariff
impacted
USD
48
billion
worth
of
Indian
exports,
affecting
sectors
like
textiles,
gems,
and
machinery;
the
initiative
aims
to
increase
India’s
market
share
in
the
USD
590
billion
textile
import
market
of
these
target
countries.
Focus
on
Market
Diversification
These
targeted
countries
account
for
over
USD
590
billion
in
textile
imports.
This
presents
India
with
significant
opportunities
to
increase
its
market
share
from
the
current
5-6%.
“Recognising
this
potential,” an
official
stated
that
the
government
plans
focused
outreach
in
both
traditional
and
emerging
markets.
The
US’s
steep
tariff
affects
Indian
exports
worth
over
USD
48
billion.
Sectors
impacted
include
textiles/clothing,
gems
and
jewellery,
shrimp,
leather
and
footwear,
animal
products,
chemicals,
and
machinery.
The
tariff
came
into
effect
on
August
27.
Impact
of
US
Tariffs
Mithileshwar
Thakur
from
the
Apparel
Export
Promotion
Council
highlighted
that
textiles
are
among
the
hardest-hit
sectors.
With
USD
10.3
billion
in
exports
affected
by
tariffs
next
only
to
gems
and
jewellery
at
USD
12
billion
and
machinery
at
USD
9
billion.
“The
apparel
industry
was
prepared
for
a
25%
reciprocal
tariff
but
not
an
additional
25%,” Thakur
said.
This
has
pushed
Indian
apparel
out
of
the
US
market
due
to
a
significant
tariff
disadvantage
compared
to
competitors
like
Bangladesh
and
Vietnam.
Strategies
for
Growth
The
EPCs
will
spearhead
India’s
participation
in
global
exhibitions
and
trade
fairs
under
a
unified
Brand
India
vision.
They
will
also
guide
exporters
on
leveraging
free
trade
agreements
(FTAs)
and
meeting
sustainability
standards.
Thakur
emphasised
the
need
for
urgent
fiscal
support
from
the
government
to
help
sustain
operations
in
the
US
market
until
favourable
trade
terms
are
restored
through
bilateral
agreements.
Future
Prospects
The
global
textiles
import
market
is
projected
at
USD
800.77
billion
by
2024.
India’s
textile
sector
is
expected
to
reach
USD
179
billion
by
then
with
a
domestic
market
of
USD
142
billion
and
exports
worth
USD
37
billion.
EPCs
will
conduct
market
mapping
and
identify
high-demand
products
while
linking
production
clusters
like
Surat
and
Tirupur
with
opportunities
in
top
markets.
FTAs
with
several
regions
can
make
Indian
exports
more
competitive.
The
industry
is
also
exploring
diversification
options
through
trade
deals
with
the
UK
and
EFTA
countries
to
mitigate
losses
from
US
tariffs.
With
inputs
from
agencies
