With a steep 50 percent tariff on Indian textile and apparel exports set to take effect in the United States from August 27, the Confederation of Indian Textile Industry (CITI) has urged the government to step in with immediate support measures. Rakesh Mehra, Chairman of CITI said the industry is looking for fiscal relief and policy action particularly around raw material availability to help the sector withstand what he described as a critical juncture.

The concern is not only about the potential loss of export revenue but also about the ripple effect on employment and long-term growth targets. India has set an ambitious goal of reaching USD 100 billion in textile and apparel exports by 2030, a target now at risk if the US duty barrier remains in place. Currently, the sector contributes around 2 percent to national GDP and is one of the largest sources of jobs and livelihoods across the country.

The US is India largest single market for textile and apparel products, accounting for nearly 28 percent of total outbound trade. In 2024-25 alone, India exported close to USD 11 billion worth of textile and apparel goods to the US. Compounding the challenge, competitors such as Vietnam and Bangladesh face far lower tariff rates of 20 percent while China remains the largest supplier to the American market.

While Indian firms are working to diversify into new geographies, CITI cautioned that building fresh client bases cannot happen overnight. Mehra underlined that despite ongoing efforts, the US will continue to hold unmatched importance for Indian textile exporters.

In parallel, India has been working on trade diversification. The recent Comprehensive Economic and Trade Agreement with the UK expected to come into effect in 2026, is set to remove duty disadvantages in that market. Yet for now, with the US tariff deadline looming, CITI is pressing for urgent domestic measures to protect a sector at the heart of India trade and employment base.