Trump Tariff: Textile sector demands relief from the government, hopes from festive season

News Topical, Digital Desk : The imposition of an additional 25 percent tariff on India by the Trump government has created uncertainty in many sectors, one of which is India's textile sector. The sector has some hopes from domestic demand during the festive season in the changing conditions, although the sector believes that they will need relief from the government to withstand this shock.

What is the industry's demand?

The industry hopes that the impact of tariffs can be reduced with the help of festive season demand and new markets. The industry hopes that the situation can also improve with relief in GST. However, along with this, the industry is also demanding some relief from the government in the form of subsidy so that it can remain in the market. Anil Peshawari, chairman of Noida-based Meenu Creation LLP and member of the executive committee of Apparel Export Promotion Council (AEPC), said that India is facing a 30% duty disparity compared to exporters from countries like Bangladesh, Vietnam, Indonesia and Sri Lanka, while these countries are only charged 18–20% duty in the US. He said that India's exports are anyway becoming 30% more expensive for buyers. The government should give at least 10% direct subsidy, so that this difference can be met to some extent. He warned that in the coming times, it may be difficult for companies to retain their employees. Peshawari said that 30% of India's garment exports go to the US, and the industry can only make up for one-third of this shortfall from other markets. This could increase the pressure. Tariff increases uncertainty India's textile and apparel industry contributes 2.3% to the country's GDP, along with 13% to industrial production and 12% to exports. This is the second largest employment provider in the country after the agriculture sector. Currently, the entire sector is facing uncertainties as the sector's largest export market is the US, which has imposed an overall tariff of 50% on India.

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