Following the imposition of a 50% tariff by the United States, India plans to launch a special promotional campaign in 40 countries to boost textile exports. This includes major markets such as the UK, Japan, South Korea, Germany, and France. The aim is to establish India as a reliable textile supplier known for quality and sustainability, and to increase its share in the global market.
US Tariff: In response to the 50% tariff imposed by the United States, effective from August 27th, India has decided to initiate a special promotional campaign in 40 key countries to boost textile exports. This campaign will target markets in the UK, Japan, South Korea, Germany, France, and other countries. Export Promotion Councils and Indian industry groups will connect production centers with targeted countries under this strategy and increase India's participation in international trade fairs. The objective is to strengthen the global competitiveness of the Indian textile industry and safeguard exports.
New Opportunities in 40 Countries
India already exports textiles to more than 220 countries, but the 40 countries included in this campaign are seen as offering significant new opportunities. These countries include major markets such as the UK, Japan, South Korea, Germany, France, Italy, Spain, the Netherlands, Poland, Canada, Mexico, Russia, Belgium, Turkey, the United Arab Emirates, and Australia. Collectively, these countries import approximately $590 billion worth of textiles and apparel.
An official stated that India will operate strategically in these countries. Under this, Indian industry groups, Export Promotion Councils, and the country's missions will play a crucial role. The aim is to establish India as a reliable supplier of textile products with quality, sustainability, and innovation.
Impact of US Tariffs
The United States implemented a 50 percent tariff on Indian products from August 27th. This will affect more than $48 billion of India's exports. In particular, the textiles, gems and jewelry, shrimp, leather and footwear, animal products, chemicals, and electrical and mechanical machinery sectors will be heavily impacted.
The textile sector, which exports $10.3 billion to the US, has been the most affected. Although the industry could manage with the initial 25 percent tariff, the current total of 50 percent has virtually excluded the Indian textile industry from the US market. As a result, India is facing duties that are 30-31 percent higher compared to competitor countries such as Bangladesh, Vietnam, Sri Lanka, Cambodia, and Indonesia.
Campaign in Focus Areas
India will focus on both traditional and new sectors in this campaign. Exporters will be promoted at international trade fairs and exhibitions. Simultaneously, various textile products will be marketed under the ‘Brand India’ initiative. Export Promotion Councils will assist exporters in utilizing Free Trade Agreements, adhering to sustainability standards, and obtaining necessary certifications.
Experts believe that FTAs and ongoing negotiations with several countries will make Indian exports more competitive. Additionally, this campaign will help establish India's textile industry as a b player in the global market.
Role of Export Promotion Councils
An official stated that Export Promotion Councils will be a crucial part of this strategy. These Councils will understand market demand, connect key production centers such as Surat, Panipat, Tirupur, and Bhadohi with targeted countries, and promote India's participation in international trade fairs and exhibitions.
