In a meeting with Piyush Goyal, Commerce and Industry Minister, Sudhir Sekhri, Chairman of the Apparel Export Promotion Council (AEPC), and Vijay Agarwal, CEO, Cotton Textiles Export Promotion Council (TEXPROCIL), discussed urgent concerns regarding the ongoing India-US bilateral trade agreement.
Assuring the industry representatives, Goyal said, the government would prioritize safeguarding the nation's textile and apparel industries. He highlighted these sectors as crucial for employment generation and export revenues during the negotiation process. Hearing the industry's concerns, he reiterated on the government's commitment to protect labor-intensive sectors like textiles and garments from any negative fallout in the current trade talks.
Industry organizations cautioned, if the United States proceeds with its proposal to impose an additional 26 per cent reciprocal tariff on Indian imports, it could severely impact India's garment and home textiles exports. These sectors are considered the backbone of India's exports to the US.
Both Sekhri and Agarwal voiced strong objections to the potential consequences of such tariffs, citing the likelihood of reduced export volumes and significant employment losses across small and medium-sized enterprises (SMEs) and rural manufacturing centers.
In FY24–25, India’s apparel exports to the US increased to $5 billion. The proposed US tariff increase is currently on hold until July 9, as an Indian delegation continues negotiations in Washington.
