The Confederation of Indian Textile Industry (CITI) has urged the government to implement policies to boost investment and scale in the textile and apparel (T&A) sector, targeting an ambitious export goal of $100 billion by 2030. Highlighting the critical role of the US and EU markets in achieving this target, CITI stressed the need for robust export promotion initiatives.
Currently, the US accounts for around 27% of India’s T&A exports. Over the past five years, exports to the US have grown at a compound annual growth rate (CAGR) of 3.3%. However, to meet the 2030 target, this growth rate must accelerate to approximately 16% CAGR, according to CITI chairman Rakesh Mehra.
Mehra noted potential opportunities arising from recent political developments in the US. “The newly elected President of the US, Trump, is likely to announce additional tariffs on Chinese products as one of his initial measures upon taking office. Since China is a major supplier of T&A products to the US, this tariff shift presents a unique opportunity for India to expand its share in the US market,” he said.
To capitalise on this opportunity, CITI emphasised the importance of strategic marketing efforts, including trade fairs, buyer-seller meetings, and collaborations with US retailer associations. These initiatives are essential to strengthen India’s presence and visibility in the US market.
CITI also advocated for the continuation of key support schemes such as the Interest Equalisation Scheme (IES) and the Remission of Duties and Taxes on Export Products (RoDTEP) for advance authorisation (AA), special economic zones (SEZs), and export-oriented units (EOUs) beyond their current expiration in December 2024. Additionally, income tax relief for micro, small, and medium enterprises (MSMEs) in the textile sector were recommended to foster sustainable growth.
Mehra expressed confidence that with the right combination of government support and proactive industry measures, India’s T&A sector could play a pivotal role in achieving the nation’s export aspirations and establishing itself as a global leader in textiles and apparel.
