CITI Urges Govt To Act Swiftly On New US Tariff Blow To Textile Sector
The Confederation of Indian Textile Industry (CITI) has called on the government to urgently support India’s textile and apparel exporters following the imposition of a steep 25% tariff on Indian imports by the U.S., the highest rate among major suppliers.
The U.S., India’s largest export market for textiles, imported goods worth US$ 4.59 billion from India between January and May 2025, marking a 13% year-on-year increase. However, the new tariff severely undermines India’s competitiveness, especially as rates for key rivals like Bangladesh (20%), Vietnam (20%) and Indonesia (19%) are significantly lower.
CITI Chairman Rakesh Mehra said the new tariff will put Indian exporters at a “severe duty disadvantage” and urged the government to ensure the availability of raw materials at globally competitive prices to help the sector stay viable.
Highlighting the government’s commitment to economic growth and recent achievements like the UK-India FTA, Mehra expressed confidence that the administration will step in to mitigate the impact of this tariff hike.
India has set a target of US$ 100 billion in textile exports by 2030. CITI also voiced support for a balanced India-US bilateral trade agreement to help level the playing field.
