North India Statesman
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American tariff on cloth: The textile and apparel industry in India is currently in a state of upheaval. The ‘mutual tariff’ policy declared by former US President Donald Trump and then a 90 -day break has increased uncertainty in the industry. The US and the European Union are the major export destinations of India, which have a 47% stake in the total textile exports.
In 2023–24, India exported a total cost of $ 34.4 billion, which included 42% of the costumes, 34% raw/semi-taiyar goods and 30% non-government products. America alone is the largest consumer of Indian textiles, which is exported to $ 10 billion.
In such a situation, what does 26% tariff declared by Trump mean for India? Therefore, at present, all countries except China have a discount of 90 days from this fee. If these fees will continue in the future also, it can cause problems for MSME units working on industries, especially low margins.
However, some experts see it as ‘a hidden blessing’ for India. According to Tax Partner Sanket Desai of EY India, levying high taxes on competitors such as Vietnam (46%), Bangladesh (37%), China (34%), Cambodia (49%) and Pakistan (29%) can give India an opportunity to increase its stake in the US.
Kumar Durajiswamy, joint secretary of the Tirupur Exporters Association, believes that India may be a pioneer in the man -made fiber sector. Due to tariffs imposed on countries such as Jordan, especially, India can become a strong option for sports apparel and handmade fiber products. However, he has also warned that if buyers demand a 50% tax burden on Indian exporters, the crisis can be worse.
Gokaldas Exports Vice President and Managing Director Shivaramakrishna Ganapathi warned that rising textiles in the US market could cause a decline in demand, which would have long -term consequences. Its effect will be clearly visible on exports especially during autumn and winter season.
At the same time, experts believe that the time has come for India to fast the bilateral trade agreement (BTA) with the US and adopt a new strategy. India can be ahead in global competition only through quality, timely delivery, cost control and discovery of new markets.
Finally, this entire tariff controversy is considered part of the US strategy to strengthen its position in the global market. India should reduce its risk and develop a strategy to expand in other markets like Europe and Latin America besides the US.
