Trump Tariffs: Industry Bodies Seek Relief Measures As India's textile Exports Fall

Hit by the steep 50% tariffs imposed by the US, India's textile exports declined 12.9% in October, pushing industry bodies to seek relief measures to arrest the fall in shipments, expected to exacerbate in the coming months.

The US is the largest export market for India's textile and apparel industry. In 2024-25, the overall size of the textile and apparel sector is estimated at $179 billion, comprising a domestic market of $142 billion and exports worth $37 billion.

Industry bodies have sought various relief measures from the government to tide over and ameliorate the impact on textile exports.

The Confederation of Indian Textile Industry (CITI) urged the Reserve Bank of India to add spinning, weaving and processing units to the list of 'eligible sectors' for the RBI's Trade Relief Measures announced on November 14.

Meanwhile, the Apparel Export Promotion Council (AEPC) demanded extension of the Interest Equalization Scheme for at least five years; continuation of the Rebate of State and Central Taxes and Levies (RoSCTL) for at least five years to ensure long-term policy stability and creation of a Market Diversification Fund to help exporters access high-tariff markets via trade fairs and buyer-seller meet.

The AEPC has also sought duty-free import of all textile and garment machinery, including sustainable and green manufacturing infrastructure to facilitate faster technology upgradation, among other measures.

'The October decline is on expected lines. The US share of India's total textile and garments exports is about 30%. The pipeline inventory is still being shipped out, but fresh orders have stopped coming in post-August. We expect the decline in textile and apparel exports to continue and worsen to 15-20% in November and December,' Sanjay K Jain, former Chairman of the Confederation of Indian Industry (CITI) told PTI.

He observed that the recovery of India's textile and apparel exports is expected only 2-3 months after the proposed India-US bilateral trade agreement (BTA) comes into effect.

'While the industry has demonstrated resilience, the recent dip in outbound shipments underlines the challenging environment our exporters are navigating -- primarily on account of subdued retail orders in the US and EU markets. In the USA due to high persisting tariff, Indian suppliers are forced to offer huge discounts just to retain customer base,' Mithileshwar Thakur, Secretary General of AEPC said.

During October 2025, India's textiles exports declined 12.92% over the previous year, while apparel exports fell 12.88% during the same period. Cumulative exports of textiles and apparel items in October 2025 slid 12.91 per cent compared to October 2024.

'Given that spinning, weaving and processing units are also facing pressure, adding these units to the list of sectors eligible under the trade relief measures would greatly benefit the overall growth and development of India's textile and apparel sector,' CITI Chairman Ashwin Chandran said.

India aims to create a $350 billion textile and apparel industry by 2030, with textile and apparel exports contributing $100 billion.

The CITI Chairman stated that spinning, weaving and processing units being made eligible for the RBI's trade relief measures could ensure that these mills are not forced to cut back on operations, arguing that such a move on the part of the RBI could also reduce the risk of people being laid off or asked to work at lower wages at spinning, weaving and processing units.

As per industry estimates, nearly 2 million spindles have already been permanently shut down in India during the last five years due to financial distress.