India Targets 40 Key Markets in Textile Export Diversification Drive

1 min read     Updated on 27 Aug 2025, 05:46 PM
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Reviewed by
Riya DeyScanX News Team
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Overview

India is initiating an outreach program targeting 40 major textile-importing countries in response to a 50% tariff hike on Indian goods by the US. The US tariffs are expected to affect Indian exports worth over $48 billion across various sectors. India currently holds a 4.10% share in the global textile trade. The outreach program aims to position India as a reliable supplier in the global textile market, connecting major production hubs like Surat, Panipat, Tiruppur, and Bhadohi with overseas opportunities. India's textile and apparel industry, valued at $179 billion with $37 billion in exports, seeks to boost its global competitiveness and diversify its export portfolio through this initiative.

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*this image is generated using AI for illustrative purposes only.

India is set to launch an ambitious outreach programme targeting 40 major textile-importing countries, including the UK, Japan, South Korea, Germany, and Canada. This strategic move comes in response to a recent 50% tariff hike on Indian goods by the United States, which is expected to significantly impact Indian exports.

Impact of US Tariffs

The newly imposed US tariffs are anticipated to affect Indian exports valued at over $48.00 billion. This substantial impact extends beyond textiles, encompassing other crucial sectors such as gems and jewellery, shrimp, leather, footwear, and machinery.

Global Textile Trade Position

Currently, India holds a 4.10% share in the global textile trade. The 40 countries targeted in this new initiative collectively account for more than $590.00 billion in global textile imports, presenting a significant opportunity for market expansion and export diversification.

Strategic Outreach

The Indian government's approach involves a coordinated effort between export promotion councils and Indian diplomatic missions abroad. These entities will spearhead efforts to position India as a reliable supplier in the global textile market. Their initiatives will include:

  • Conducting comprehensive market mapping
  • Linking major Indian production hubs to overseas opportunities
  • Showcasing India's textile manufacturing capabilities

Key Production Centers

The outreach programme will highlight India's prominent textile production centers, including:

  • Surat
  • Panipat
  • Tiruppur
  • Bhadohi

These hubs will be directly connected with potential opportunities in the target countries, leveraging their unique strengths and specializations.

Industry Overview

India's textile and apparel industry is a cornerstone of the country's manufacturing sector:

Metric Value
Total Industry Size $179.00 billion
Export Contribution $37.00 billion

This new initiative aims to boost the export contribution significantly by tapping into new markets and strengthening India's position in existing ones.

Looking Ahead

As India embarks on this strategic export diversification, the move is expected to not only mitigate the impact of the US tariffs but also to enhance India's global competitiveness in the textile sector. The success of this initiative could pave the way for a more resilient and diversified export portfolio, reducing dependency on any single market.

The coming months will be crucial as India rolls out its outreach programmes, with the potential to reshape the landscape of global textile trade and bolster India's position as a key player in the international textile market.

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India Scraps Cotton Import Duty for 42 Days, Boosting Textile Industry

1 min read     Updated on 19 Aug 2025, 06:58 PM
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Reviewed by
Shriram ShekharScanX News Team
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Overview

India has temporarily removed the 11% import duty on raw cotton for 42 days, from the present until September 30. This move aims to support the textile industry by stabilizing cotton prices, reducing production costs, and enhancing export competitiveness, particularly in the U.S. market. The decision is expected to benefit the entire textile value chain, including yarn manufacturers, fabric producers, garment makers, and SMEs in the sector. The government describes this as a necessary measure in the public interest, addressing challenges such as volatile global cotton prices, weak external demand, and increased international competition.

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*this image is generated using AI for illustrative purposes only.

In a significant move to support its textile industry, India has temporarily eliminated the 11% import duty on raw cotton. This decision, effective immediately and lasting until September 30, provides a 42-day window of relief for textile manufacturers grappling with rising input costs and competitive pressures in the U.S. market.

Government's Swift Action

The Indian government issued a gazette notification, describing the exemption as a necessary measure in the public interest. This swift policy adjustment aims to address several challenges faced by the textile sector:

  • Stabilization of cotton prices
  • Reduction of production costs for textile manufacturers
  • Enhancement of export competitiveness, particularly in the U.S. market

Industry Challenges

The textile industry in India has been navigating through turbulent waters, facing:

  • Volatile global cotton prices
  • Weak external demand
  • Increased competition in international markets

Strategic Temporary Relief

The 42-day duration of this import duty waiver is a calculated move by the government. It serves dual purposes:

  1. Short-term Industry Support: Provides immediate relief to mills and exporters, helping them manage costs and maintain competitiveness.
  2. Balancing Act: Avoids prolonged downward pressure on domestic cotton prices, which could potentially harm local farmers.

Wide-ranging Benefits

The removal of the import duty is expected to have a positive impact across the entire textile value chain, including:

  • Yarn manufacturers
  • Fabric producers
  • Garment makers
  • Small and medium enterprises in the sector

Looking Ahead

While this temporary measure offers a reprieve to the industry, it also highlights the ongoing challenges faced by India's textile sector. The government's responsiveness to industry needs suggests a willingness to implement flexible policies to maintain the sector's global competitiveness.

As the September 30 deadline approaches, industry stakeholders will be keenly watching for any potential extensions or additional measures to support this crucial sector of the Indian economy.

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