By Vishu Adhana
New Delhi [India], September 15 (ANI): Despite tariff obstacles imposed by the US, India’s textile sector is poised for a ‘growth’, sources within the Textile Ministry stated, citing diversification of provide chains and the rationalisation of GST charges, that are anticipated to drive home consumption.
The ministry is stepping up efforts and boosting exports to European and Asian international locations, with groups set to go to France, the UK, and Singapore in September to scout new markets and strengthen current ones.
‘We usually are not anticipating a fall, however we’re headed in the direction of a growth within the textile trade. GST rationalisation, which may be very pro-textiles, could have a big impact on the home market,’ an official on the Textile Ministry informed ANI on Monday.
Officials identified that 80 per cent of textile models are MSMEs, using largely girls and rural employees, and that the sector is at present valued at USD 179 billion, projected to just about double to USD 350 billion by 2030. India presently produces round 22,000 million clothes yearly, a determine anticipated to the touch 40,000 million clothes by 2030.
The official apprised that the ministry is working with companies to diversify into new forms of materials and attire, which can assist them faucet area of interest markets resembling Russia and Japan.
The steep tariffs of as much as 50 per cent imposed by the Trump administration on Indian textiles have dealt a significant blow to the sector, making exports to the US far much less aggressive in comparison with rivals like Bangladesh and Vietnam. Export orders from key hubs resembling Tirupur, Noida, and Surat are being delayed or diverted, resulting in a projected 5-10 per cent income drop for residence textile corporations this fiscal.
However, officers consider this was solely an preliminary shock. ‘The US accounts for 5 per cent of India’s complete textile exports, so the affect is restricted. GST cuts, from 12 per cent to 5 per cent on carpets and flooring coverings, and 18 per cent to five per cent on MMF attire, will assist offset the tariff shock,’ the official stated, including that clothes below Rs 2,500 at the moment are tax-exempt, opening up a bigger home market.
While noting negotiations with the US are underway, officers on the ministry stated that New Delhi is taking a look at totally different markets and has began an outreach programme in varied international locations.
‘We are asking embassies to arrange exhibitions to advertise Indian attire, and we’re additionally reaching out straight. This month, Textile Ministry groups will go to Singapore, France, and the UK, the place they’ll maintain talks with trade leaders and authorities officers. Our focus is diversification,’ the official added.
India exports textiles to greater than 220 international locations, and regardless of tariff disadvantages, shipments have proven resilience. According to ministry information, export development between April-August 2024 and April-August 2025 was robust in Japan (+23%), France (+12%), Germany (+10%), UAE (+10%), UK (+9%) and Indonesia (+9%).
Officials, nevertheless, flagged a focus danger: 70 per cent of India’s textile exports depend on simply 10 markets–the US, Germany, France, Japan, Italy, UK, Spain, Netherlands, Poland and South Korea. In FTA accomplice international locations, the scope stays underutilised: whereas these markets import textiles value USD 199 billion yearly, India’s share is simply USD 11.3 billion (5.68 per cent).
‘There is a big untapped alternative,’ the official famous, stating that in 40 main markets throughout Africa, Latin America and CIS countries–together importing USD 590 billion value of textiles–India’s share is simply 5.25%.
MSMEs are central to this export push. Their share in India’s complete exports has risen from 44 per cent in 2022-23 to 47 per cent by May 2024-25, whereas their contribution to Gross Value Added (GVA) climbed from 27 per cent in 2022 to 31 per cent in 2024.
The Indian textile trade has a powerful uncooked materials base–cotton, silk, wool, jute, artifical fibre–and manufacturing energy throughout the worth chain from fibre to material to clothes.
Meanwhile, the federal government is extending a collection of mitigating measures resembling subsidised rates of interest, collateral-free loans and credit score ensures to labour-intensive exporters. Under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), ensures value 10.8 lakh crore have been prolonged to over 1.24 crore enterprises, with 85 per cent protection for girls entrepreneurs.
India has signed 15 Free Trade Agreements (FTAs), together with the just lately concluded India-UK pact, to cut back tariff and non-tariff obstacles and make exporters extra aggressive. Yet, officers admit that India’s share in high FTA markets like Japan, South Korea, UAE and Australia stays under-utilised.
At the identical time, schemes like PM MITRA Parks, the PLI scheme for MMF attire and technical textiles, SAMARTH skilling programme, and the RAMP initiative with a Rs 6,000 crore outlay are anticipated to considerably increase MSME participation, improve competitiveness, and put together India for brand new markets, sources stated. (ANI)
