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Sign a ‘zero for zero’ tariff deal with the US, T&A leaders urge government

 

Leaders from the Indian textile and apparel (T&A) industry are urging the government to enter into ‘zero for zero’ tariff deal with the United States to protect strategic products from the reciprocal tariffs to be imposed by the US starting April 2, 2025.   

Chandrima Chatterjee, Secretary General, Confederation of Indian Textile Industry (CITI) opines, US President's reciprocal tariff policy could help India strengthen export growth to the US.

Currently, India holds a mere 6 per cent share of the US apparel import market. Prabhu Damodaran, Convenor, Indian Texpreneurs Federation, emphasizes, even a 4 per cent increase would translate to a significant $3 billion opportunity.

India ranks as the third-largest supplier of T&A products to the US, behind China and Vietnam, with a 10.8 per cent market share of the $118.4 billion US import market. In 2024, US textile and apparel imports from India totaled $10.8 billion, while US exports to India were only $0.41 billion. India's imports primarily consist of fiber products, with cotton comprising 50.6%. K. Venkatachalam, Chief Advisor, Tamil Nadu Spinning Mills Association, stresses that current cotton shortages in India, due to crop failures, should be leveraged to gain trade advantages.  

As the world's largest apparel importer, the US is a crucial export destination for India, accounting for 35 per cent of Indian apparel exports. Mithileshwar Thakur, Secretary General, AEPC, reports, in 2024, that apparel exports to the US increased by 11.2 per cent reached $5.2 billion

The T&A industry advocates for attention to manmade fibers, an emerging export sector. The AEPC identifies products with over $100 million in US exports and PLI scheme products as strategic for trade negotiations. In 2024, the US imported $79.26 billion in apparel, with China, Vietnam, Bangladesh, and India holding market shares of 21 per cent, 19 per cent, 9.3 per cent, and 5.9 per cent respectively. 

 
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