US-Iran Deal To Boost India’s Textile Industry: CITI
The Confederation of Indian Textile Industry (CITI) has welcomed the announcement by US President Donald Trump regarding a proposed agreement with Iran aimed at ending the ongoing conflict in West Asia. The industry body expressed optimism that the development will restore stability in the region and provide significant relief to India’s textile and apparel sector.
Welcoming the proposed deal, CITI Chairman Ashwin Chandran said that once formally signed, the agreement is expected to ease the geopolitical and economic uncertainties that have affected global trade over the past three months.
“The proposed agreement will help restore confidence in international trade by ensuring the smooth movement of goods through the Strait of Hormuz, a critical maritime route for global commerce and energy supplies,” Chandran said.
He noted that the prolonged tensions in West Asia had disrupted raw material supplies, strained supply chains, and increased industrial energy costs, placing considerable pressure on India’s textile and apparel industry, which is largely dominated by micro, small and medium enterprises (MSMEs).
“The turbulence in the region had a direct impact on our sector, which traditionally operates on thin margins and has limited capacity to absorb prolonged financial shocks. The return of stability will provide much-needed relief to textile manufacturers and exporters,” he added.
West Asia, particularly the UAE, remains an important export destination for Indian textiles and apparel. Chandran emphasized that improved regional stability would support India’s efforts to diversify textile and apparel exports and strengthen its presence in international markets.
“The uninterrupted functioning of the Strait of Hormuz will enhance trade efficiency and enable Indian exporters to better leverage the opportunities arising from various Free Trade Agreements (FTAs),” he said.
India has set an ambitious target of achieving US$ 100 billion in textile and apparel exports by 2030. Industry stakeholders believe that improved geopolitical stability, coupled with favourable trade agreements and stronger global demand, will play a crucial role in helping the sector achieve this objective.
