American tariffs: India plans to face US states that have triggered 50 % of textiles, through specialized field programs in 40 countries, PTI said.
The official added that these 40 countries include Australia, Belgium, Canada, France, Germany, Italy, Japan, Mexico, Poland, Russia, Spain, South Korea, Turkiy, the Netherlands, the United Arab Emirates and the United Kingdom.
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What is the Indian strategy for reach?
According to the official, in each of the 40 countries, it is a proposal to “seek a targeted approach and stand up as a reliable supplier of quality, sustainable and innovative textile products”. They added that the main roles of the Indian industry, including EPCS and Indian missions in these countries, will be important, the report added.
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Why these 40 countries?
According to an official, India already has export ties with more than 220 countries. However, 40 importing countries listed for Outreach have a real key to diversification.
“Together, these 40 countries represent more than $ 590 billion in textile and clothing imports, offering huge opportunities for India to increase its market share, which is currently only about 5-6 percent. This is recognized by the government in each of these 40 countries.
A steep 50 % tariff on Indian goods entering the United States, which came into force from 27 August, would affect exports worth more than $ 48 billion.
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India is based on EPC and Indian missions abroad to push exports
According to the official, the Indian Council for Export Support (EPCS) will be “spine” in the diversification strategy.
- They will perform market mapping, identify high demand products and connect specialized production clusters such as Surrat, Panipat, Tirupur and Bhadohi, on occasions in 40 countries.
- It is also expected that EPC will lead to India’s participation in international exhibitions, trade fairs and meetings with seller buyers, while leading campaigns specific to sectors within the unified vision of India.
- Councils will also lead exporters on the use of free trade agreements (FTA), meeting standards of sustainability and ensuring the necessary certificates.
- “FTA and negotiations with several of these geographies will help Indian exports competitive, and there is a huge potential for growth in these areas,” PTI official said.
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Which sectors will probably be most affected?
Donald Trump’s tariffs for Indian imports to the US have doubled from April from 25 percent to 50 percent from August 27 after imposing a “punishment” for oil purchases from Russia in the middle of the invasion of Ukraine.
The home industries to feel warm include, textiles and clothing, gems and jewelry, shrimp, leather and shoes, animal products, chemicals and electric and mechanical machines.
In FY25, according to the PTI report, the total size of the textiles and clothing at $ 179 billion is estimated, which includes $ 142 billion and $ 37 billion exports.
In 2024, the international markets were awarded the import of textiles and clothing to $ 800.77 billion, while India held a 4.1 % share of world trade and was evaluated as the sixth largest exporter, in the middle of 220 countries.
According to Mithileshwar Thakur, the Secretary General, the Council for Promoting Clothing Exports (AEPC), a textile sector with an export of $ 10.3 billion is one of the worst sectors on the $ 9 billion market with $ 9 billion.
He added that a total of 50 % tariff on Indian imports into the US “effectively caused the Indian clothing industry from the US market as a gap of 30-31 % of tariffs disadvantages to major competitive countries such as Bangladesh, Vietnam, Sri Lanka, Cambodia and Indonesia.”
The Ministry of Commerce to organize meetings with different sectors
In another report, the clerk said PTI that the Ministry of Trade will organize many meetings with exporters from various sectors this week. The meeting will discuss ways to strengthen exports to new markets to protect the industry from the impact of steep American tariffs.
The clerk also stated that the work progresses rapidly to formulate the export support, announced in the budget of 2025-26. “In the next 2-3 days, the ministry will meet the parties to diversify exports,” the clerk added.
The US was approximately 20 percent of exports of goods of $ 437.42 billion in FY25. It is the largest Indian business partner from FY22. In FY25, bilateral trade was $ 131.8 billion (exports of $ 86.5 billion and importing $ 45.3 billion).
(Tagstotranslate) textile export
