India plans outreach programmes in 40 nations to push textiles exports amid 50% US tariffs
India’s counter to Trump’s 50% tariff: Delhi plans outreach programmes in 40 nations to push textile export
India’s counter to Trump’s 50% tariff: Delhi is planning outreach programs in 40 countries to counter a 50 per cent US tariff on textiles, focusing on sustainable products and enhancing market share.
India plans outreach programmes in 40 nations to push textiles exports amid 50% US tariffs
US tariffs: India plans to counter the United States’ hiked 50 per cent tariffs on textiles, through dedicated outreach programmes in 40 countries, an official told PTI.
The official added that these 40 countries include, Australia, Belgium, Canada, France, Germany, Italy, Japan, Mexico, Poland, Russia, Spain, South Korea, Turkiye, the Netherlands, the United Arab Emirates, and the UK.
What is India’s strategy for outreach?
India’s counter to Trump
According to the official, in each of the 40 countries, the proposal is to “pursue a targeted approach, positioning itself as a reliable supplier of quality, sustainable, and innovative textile products”. They added that the lead role of the Indian industry, including EPCs and Indian Missions in these countries, will be important, the report added.
Why these 40 countries?
According to the official, India already has export ties with more than 220 countries. However, the 40 importing countries listed for outreach hold the real key to diversification.
“Together, these 40 countries represent over $590 billion in textile and apparel imports, offering vast opportunities for India to enhance its market share, which currently stands at only around 5-6 per cent. Recognising this, the government is planning dedicated outreach programmes in each of these 40 countries, with a focus on both traditional markets and emerging markets,” the official added.
The steep 50 per cent tariff on Indian goods entering the United States, which came into effect from August 27, would impact exports worth more than $48 billion. India to lean on EPCs and Indian Missions abroad to push exports According to the official, India’s Export Promotion Councils (EPCs) will be the “backbone” in the diversification strategy.
They will conduct market mapping, identify high-demand products, and link specialised production clusters such as Surat, Panipat, Tirupur, and Bhadohi to opportunities in the 40 countries. The EPCs are also expected to lead India’s participation in international exhibitions, trade fairs, and buyer-seller meets, while also running sector-specific campaigns under a unified Brand India vision. The councils will further guide exporters on using free trade agreements (FTAs), meeting sustainability standards, and securing necessary certifications.
“FTAs and negotiations with several of these geographies will help make Indian exports competitive, and there is a huge potential for growth in these areas,” the official told PTI.
Which sectors are likely to be most hit?
Donald Trump’s tariffs on Indian imports into the US, have doubled from 25 per cent since April, to 50 per cent from August 27, after he imposed “punishment” for oil purchases from Russia amid the Ukraine invasion.
Domestic sectors that are set to feel the heat include, textiles and clothing, gems and jewellery, shrimp, leather and footwear, animal products, chemicals, and electrical and mechanical machinery.
In FY25, the overall size of the textile and apparel sector is estimated at $179 billion, comprising a domestic market of $142 billion and exports worth $37 billion, according to the PTI report.
In the international markets, textiles and apparel import was valued at $800.77 billion in 2024, with India holding 4.1 per cent share in world trade, and ranking as the sixth-largest exporter, amid trade with 220 countries.
According to Mithileshwar Thakur, Secretary General, Apparel Export Promotion Council (AEPC), the textiles sector, with exports of $10.3 billion, is one of the worst-impacted sectors, next only to gems and jewellery with $12 billion, and electrical and mechanical machinery with $9 billion exposure to the US market.
He added that the total 50 per cent tariff on Indian imports into the US, “has effectively driven the Indian apparel industry out of the US market as the gap of 30-31 per cent tariff disadvantage vis-a-vis major competing countries like Bangladesh, Vietnam, Sri Lanka, Cambodia & Indonesia.”
Commerce Ministry to hold meetings with various sectors India’s counter to Trump
In another report, an official told PTI that the Commerce Ministry will hold a series of meetings this week with exporters from various sectors. The meet will discuss ways to boost exports to new markets to shield industries from impact of the steep US tariffs.
The official also said work is progressing fast on the formulation of the Export Promotion Mission, announced in the Budget for 2025-26. “In the next 2-3 days, the ministry will meet stakeholders on the diversification of exports,” the official added.
The US accounted for about 20 per cent of India’s $437.42 billion worth of goods exports in FY25. It is India’s largest trading partner from FY22. In FY25, the bilateral trade in goods stood at $131.8 billion ($86.5 billion exports and $45.3 billion imports).
