The announcement of 50% reciprocal tariff by the USA on Indian imports is a matter of deep concern for India’s textile and apparel industry. The United States is one of the largest export destinations, and such a steep tariff will severely impact the competitiveness of Indian products in the American market, hurting both exporters and consumers. Despite these challenges Chairman AEPC Sudhir Sekhri has written to the Prime Minister, Shri Narendra Modi, assuring all support to the government on its stand of protecting the interests of Indian farmers, dairy industry and fishermen.
Sekhri in his letter to the PM said, “I am writing to express the unwavering and unequivocal support, of the Apparel Export Promotion Council and its members, for the Government of India’s stance on not yielding to the unreasonable and unethical pressure of the reciprocal tariffs imposed on India by the United States. As Chairman of the Council, I appreciate your government’s firm resolve in protecting the interests of Indian farmers, dairy industry and fishermen.” The recent tariff hike by the US is indeed a huge challenge for merchandise exporters. However, we are of the firm belief that India’s principled and measured stand will ultimately benefit our nation’s economic interests in the long term. The government’s commitment to safeguarding the nation’s progress and self-reliance is commendable, Chairman AEPC added.
Highlighting the stress, Chairman AEPC wrote, “Our industry is already experiencing the effects of the tariff hike, with potential losses and order cancellations. We are exploring alternate markets and strategies to mitigate the impact of the US tariffs. We are also in active discussions with the Ministry of Textiles and Ministry of Commerce & Industry. In our meetings with the Hon’ble Ministers of both the Ministries, we have been assured of their best possible support.”
The Government is doing its best to conclude a balanced trade agreement with the US, addressing the concerns of the industry and promoting mutual understanding. The apparel industry looks forward to continued support of the government in navigating these challenges.
Sekhri commended the government’s leadership in upholding India’s interest amidst global trade tensions. He further expressed confidence that this stance of the government will yield long-term benefits for our nation’s growth and development.
Stressing upon the crisis Mithileshwar Thakur, Secretary General AEPC said, “Indian textiles are globally valued for its quality, sustainability, and affordability, and such barriers risk disrupting long standing supply chains built over decades. With such a high tariff the Indian apparel sector clearly risks being tossed out of the US market. The industry is nonetheless prepared to bite the bullet in the larger national interest.”
We will need to intensify our efforts towards market diversification. West Asian markets like Saudi Arabia, Latin America like Mexico & Chile and Eurasian markets like Russia hold promise. Given its huge appetite for clothing consumption, EU is an extremely important market and we would like FTA with EU to be fast-tracked to give the Indian apparel industry a level playing field vis-à-vis Bangladesh and Vietnam who enjoy duty free access in that market, SG AEPC added.
