The government has been urged by the Confederation of Indian Textile Industry (CITI) to implement targeted programs and regulations in order to stimulate investment and growth in the textile and apparel (T&A) industry.
This occurs while India aims to reach the lofty export goal of $100 billion USD by 2030. CITI underlined the significance of strong export promotion policies in order to realize this goal, given that important markets like the USA and the EU are set to play crucial roles.
The importance of the US market was emphasized by CITI Chairman Rakesh Mehra, who stated that over 27% of India’s T&A exports go to the USA. India’s exports to the United States have grown at a compound annual growth rate (CAGR) of around 3.3% during the past five years. The ambitious goal of USD 100 billion in exports by 2030 would need our exports to expand at a CAGR of almost 16%.
Mehra also highlighted the fresh prospects brought forth by the expected policy shifts in the United States under recently elected President Donald Trump.
“As one of his first actions after taking office, Trump, the recently elected president of the United States, is probably going to declare more tariffs on Chinese goods. This tariff change offers India a special chance to increase its market share in the US as China is a significant exporter of T&A products to the US, he said.
CITI emphasized the necessity of strategic marketing initiatives to strengthen India’s position in the US market in order to take advantage of this potential. These include of setting up buyer-seller meetings, holding trade shows, and forming alliances with US store groups.
“Enhancing our visibility and presence in the US market through these targeted efforts will be crucial for tapping into this potential,” Mehra said.
In order to maintain Indian T&A goods’ cost competitiveness, CITI also emphasized the significance of policy assistance. The group called on the government to prolong important programs that are about to expire on December 31, 2024, such as the Interest Equalization Scheme (IES) and the Remission of Duties and Taxes on Exported Products (RoDTEP) for AA/SEZ and EoU units.
In order to guarantee sustained growth, CITI also promoted income tax reduction for MSME manufacturing companies in the textile industry.
“These policy interventions, combined with focused initiatives aimed at key export markets like the USA, will strengthen India’s overall export strategy and enhance the global competitiveness of the Indian textile industry,” Mehra said.
