Government Working to Mitigate Impact of US Tariff on Textiles and Apparel Exports

The government is actively engaging with exporters, including MSMEs, from various states to evaluate the effects of US tariffs on textiles and apparel exports. Minister of State for Textiles, Pabitra Margherita, highlighted that the government is pursuing a multi-pronged strategy to address these challenges. This strategy involves discussions with the US government for a potential Bilateral Trade Agreement, immediate relief through trade measures, credit support for exporters, enhancing domestic demand through GST reforms, export promotion initiatives like the Export Promotion Mission, and exploring new FTAs.
Additionally, measures such as extending the Export Obligation period, revising investment norms under the PLI Scheme, and exempting import duty on cotton have been implemented to facilitate the textile sector. The government is also overseeing schemes like Rebate of State and Central Taxes and Levies (RoSCTL) and Remissions of Duties and Taxes on Exported Products (RoDTEP) to support textile exports.
Regular consultations are being held with exporters, export promotion councils, and stakeholders to assess the impact of US tariffs on India’s textiles and apparel exports. India’s textile and apparel exports, excluding handicrafts, reached $32,560.04 million from January to November 2025, showing a marginal growth compared to the previous year. The government is closely monitoring the export of textiles and apparel, including handicrafts, to the US and other global markets to understand the impact of US tariffs on the entire textile sector.