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CITI welcomes Trump’s win, sees growth potential in India-US textile trade

  

The Confederation of Indian Textile Industry (CITI) has expressed optimism over Donald J Trump's recent presidential win in the United States, anticipating a positive impact on India's textile and apparel (T&A) trade with its largest export destination. In 2023, the US accounted for over 27 percent of India’s T&A exports, underscoring its critical role in India’s global trade expansion.

CITI Chairman Rakesh Mehra highlighted a notable rise in textile and apparel (T&A) exports to the US, reporting nearly 6 percent growth in the current fiscal year compared to the same period last year. This rate exceeds that of key competitors, with China showing a 2.2 percent increase, Vietnam at 0.4 percent, and Bangladesh experiencing a 2.2 percent decline. Mehra pointed out that this improvement in India’s export performance indicates a growing interest from American consumers in Indian T&A products.

Mehra pointed to the Trump administration’s previous efforts to diversify sourcing away from China as a favorable factor aligning with India’s ambitions to expand in the American market. This shift has opened doors for Indian textiles, providing a viable alternative for US buyers seeking to reduce dependence on Chinese imports.

However, high US tariffs, which can reach up to 32 percent on certain apparel categories, remain a barrier to further growth. These tariffs, Mehra noted, limit India’s ability to fully capitalize on its growing market share in the US. CITI is hopeful that Trump’s new administration will prioritize trade discussions with India to address tariff-related obstacles, enhancing India’s role as a major supplier of high-quality textiles and apparel to the US.

Such a collaboration, according to Mehra, could mark a new era in US-India textile trade, offering American retailers and consumers a competitive alternative to Chinese products.

 
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