CITI hopes Trump’s Election would Strengthen Indian Textile Trade with USA
New Delhi, 14th Nov 2024: The Confederation of Indian Textile Industry (CITI) has welcomed the election of Donald J. Trump as President of the United States, and has expressed hope that it will bolster India’s textile and apparel (T&A) trade with its largest international market. In 2023, the U.S. accounted for approximately 27% of India’s total T&A exports, underscoring its crucial role in the industry’s global reach.
In a press statement, CITI Chairman Mr. Rakesh Mehra highlighted the positive trend in exports to the U.S., noting, “In the current financial year, India’s T&A exports to the U.S. during April-August increased by about 6% compared to the same period last year. This outpaced the growth rates of key competitors, with China at 2%, Vietnam at 0.4%, and Bangladesh recording a decline of -2.2%. India’s enhanced performance signals its growing preference among U.S. buyers and highlights its increasing share in this critical market.”
Shri Mehra emphasized that President Trump’s previous administration focused on reducing dependency on China by diversifying trade sources, a stance that is in line with India’s aspirations to strengthen its position in the U.S. market. “With the new administration, the Indian T&A industry is optimistic about expanding its role as an alternative supplier to China,” he stated.
However, there is a significant barrier that remains to be crossed. That is in the form of high tariff rates. It can reach up to even upto 32% for certain apparel categories. Mr. Mehra has expressed hope this restriction to India’s ability to further increase its market share would be addressed.
“CITI is hopeful that the new government will work closely with India to facilitate revisions in tariffs, thus positioning India as a key supplier of quality textile and apparel products to the U.S. This could catalyze a new phase in India-U.S. textile trade relations, providing a valuable alternative to China for American retailers and consumers alike”, Mr. Mehra added in his statement.
