{"id":57760,"date":"2025-08-02T10:53:10","date_gmt":"2025-08-02T05:23:10","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=57760"},"modified":"2025-08-02T10:53:10","modified_gmt":"2025-08-02T05:23:10","slug":"indias-apparel-exporters-seek-government-relief-as-u-s-tariffs-hurt-competitiveness","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/indias-apparel-exporters-seek-government-relief-as-u-s-tariffs-hurt-competitiveness\/","title":{"rendered":"India&#8217;s Apparel Exporters Seek Government Relief as U.S. Tariffs Hurt Competitiveness"},"content":{"rendered":"<h2><b>Indian Apparel Exporters Latest News<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Domestic apparel exporters have raised serious concerns over the United States\u2019 decision to impose a <\/span><b>25 per cent tariff on Indian textile and apparel products<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This rate is significantly higher than that imposed on key competitors like <\/span><b>Bangladesh (20%), Vietnam (20%), Indonesia (19%), and Cambodia (19%)<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The new tariffs, set to take effect from <\/span><b>August 7<\/b><span style=\"font-weight: 400;\">, have left Indian exporters at a severe disadvantage in their largest export market.<\/span><\/li>\n<\/ul>\n<h2><b>Indian Apparel Exporters Seek Urgent Government Support<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">With the U.S. imposing a steep 25% tariff on Indian apparel, Indian textile and apparel exporters have raised alarm over their diminishing competitiveness in the U.S. market.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The new tariffs are expected to severely impact India\u2019s export margins, forcing manufacturers to sell below cost to sustain operations and avoid mass layoffs.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Industry experts have called for immediate government intervention to offset this setback.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">They warned that the duty disadvantage will further compound existing challenges faced by Indian exporters.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">They urged the government to ensure easier access to raw materials and support measures to mitigate the adverse impact of these tariffs on India\u2019s textile and apparel sector.<\/span><\/li>\n<\/ul>\n<h2><b>India\u2019s Apparel Market Share in U.S. on the Rise Despite Challenges<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">While China remains the largest exporter of textiles and apparel to the U.S., its market share has declined from 27.4% in 2020 to 21.9% in 2024.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In contrast, <\/span><b>India\u2019s share in the U.S. garment import market has grown from 4.5% to 5.8% during the same period<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The U.S. is a crucial market for India\u2019s Ready-Made Garments (RMG), accounting for <\/span><b>33% of India\u2019s total garment exports in 2024<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India currently ranks as the fourth-largest RMG exporter to the U.S. Among India\u2019s top exports to the U.S. are cotton T-shirts (9.71% share), women\u2019s or girls\u2019 cotton dresses (6.52%), and babies\u2019 cotton garments (5.46%).\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These products command a significant share in the U.S.\u2019s total imports of these items globally, reflecting India\u2019s steadily growing footprint in a competitive market.<\/span><\/li>\n<\/ul>\n<h2><b>Government Measures to Boost Textile Exports<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India&#8217;s textile and handicrafts exports grew by 5% in FY25, reaching $37.7 billion compared to $35.8 billion in the previous fiscal year, according to the Ministry of Textiles.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To further strengthen the sector, the government is implementing the <\/span><b>Scheme for Integrated Textile Park (SITP)<\/b><span style=\"font-weight: 400;\"> to develop world-class infrastructure in textile hubs across the country.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Additionally, the government has finalized the establishment of <\/span><b>seven PM Mega Integrated Textile Region and Apparel (PM-MITRA) parks<\/b><span style=\"font-weight: 400;\"> in Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh, and Maharashtra.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These parks, with a total outlay of \u20b94,445 crore, aim to enhance India&#8217;s textile manufacturing ecosystem over the next seven years, up to 2027-28.<\/span><\/li>\n<\/ul>\n<h2><b>India-U.S. Trade Talks Stalled Over Agriculture and GM Crop Imports<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India-U.S. trade negotiations are facing a deadlock over sensitive sectors like agriculture and automobiles, with discussions expected to resume after mid-August.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A major sticking point is the U<\/span><span style=\"font-weight: 400;\">.S. demand for India to allow imports of genetically modified (GM) agricultural products such as corn and soya<\/span><span style=\"font-weight: 400;\">, which India is unlikely to accept.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Agriculture has long been a contentious issue in bilateral trade relations, with the United States Trade Representative (USTR) previously criticizing restrictions on GM products by other countries as discriminatory.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This ongoing impasse continues to hinder progress on a broader trade agreement.<\/span><\/li>\n<\/ul>\n<p><b>Source:<\/b> <a href=\"https:\/\/indianexpress.com\/article\/business\/with-us-their-key-market-worried-apparel-exporters-seek-govt-help-10164600\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">IE<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Facing steep 25% U.S. tariffs, Indian apparel exporters urge government intervention to protect jobs and sustain export momentum.<\/p>\n","protected":false},"author":18,"featured_media":57771,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[1959,60,22,59],"class_list":{"0":"post-57760","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-indian-apparel-export","9":"tag-mains-articles","10":"tag-upsc-current-affairs","11":"tag-upsc-mains-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/57760","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=57760"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/57760\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/57771"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=57760"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=57760"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=57760"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}