New Delhi– The Confederation of Indian Textile Industry (CITI) on Thursday welcomed the United States’ 90-day pause on reciprocal tariffs, calling it a short-term relief for Indian textile and apparel exporters. The industry body also urged the Indian government to implement an interim Textile Export Protection Scheme to safeguard exporters during this temporary window.
U.S. President Donald Trump recently announced a 90-day suspension of reciprocal tariffs for all countries except China. During this period, a reduced reciprocal tariff rate of 10 percent—on top of existing duties, fees, and taxes—will apply.
“The temporary relief provides short-term respite for Indian textile and apparel exporters, who were preparing for heightened tariff barriers,” said CITI Chairman Rakesh Mehra. “However, this is merely a stopgap. It is imperative that the Indian government intensifies its dialogue with U.S. counterparts to secure a long-term, mutually beneficial resolution.”
Mehra emphasized the strategic importance of the U.S. market, noting it remains the single largest destination for Indian textile and apparel exports.
“While bilateral negotiations are ongoing to improve tariff access, the industry strongly recommends the introduction of an interim Textile Export Protection Scheme,” he said.
Such a scheme, Mehra explained, would help offset the burden of additional tariff-related costs, especially in a sector known for operating on razor-thin margins.
He also pointed to the broader opportunity presented by ongoing U.S.-China trade tensions. As the U.S. seeks to diversify its sourcing away from China, India is well-positioned to emerge as a reliable alternative—provided it engages in proactive diplomacy and works to secure a more stable and favorable trade environment.
According to the latest figures, India exported textile and apparel products worth $10.5 billion to the U.S. in 2024, accounting for approximately 28.5% of its total exports in the sector.
Over the past five years, India has steadily built its reputation as a preferred trade partner for the U.S. in the textile and apparel space. (Source: IANS)
