The US currently accounts for approximately 27 per cent of India’s T&A exports. Over the past five years, exports to the US have grown at a compound annual growth rate (CAGR) of about 3.3 per cent. To meet the ambitious 2030 target, exports will need to accelerate to a CAGR of around 16 per cent, CITI chairman Rakesh Mehra said in a press release.
CITI is advocating for government schemes to escalate textile and apparel (T&A) exports to a $100 billion target by 2030, focusing on the US and EU markets.
CITI chairman Rakesh Mehra suggests leveraging potential US tariff changes on Chinese goods to gain market share and calls for continued supportive policies and strategic marketing efforts to enhance India’s global textile competitiveness.
Mehra highlighted the potential opportunities arising from the recent political changes in the US. “The newly elected President of the US, Trump, is likely to announce additional tariffs on Chinese products as one of his initial measures upon taking office. Since China is a major supplier of T&A products to the US, this tariff shift presents a unique opportunity for India to expand its share in the US market,” he said.
To seize this opportunity, CITI emphasises the importance of strategic marketing initiatives such as trade exhibitions, buyer-seller meetings, and partnerships with US retailer associations. These efforts are vital for enhancing India’s visibility and presence in the US market.
Furthermore, CITI advocates for the continuation of supportive schemes like the Interest Equalisation Scheme (IES), and Remission of Duties and Taxes on Export Products (RoDTEP) for advance authorisation (AA)/special economic zones (SEZ) and export-oriented units (EoU) units beyond their current end date of December 31, 2024. Income tax relief for micro, small and medium enterprises (MSMEs) within the textile sector was also recommended to ensure sustainable growth.
Mehra concluded by expressing optimism that with the right mix of government support and proactive industry efforts, India’s T&A sector could significantly contribute to the nation’s export aspirations and establish itself as a global leader in textiles and apparel.
Fibre2Fashion News Desk (KD)
