Commerce and Industry Minister Piyush Goyal has confirmed that the government will prioritize the textiles and apparel industry in the forthcoming trade discussions with the United States, according to a statement from the Apparel Export Promotion Council (AEPC) released on Friday.
AEPC Chairman Sudhir Sekhri and Vijay Agarwal, Chair of the Cotton Textiles Export Promotion Council (TEXPROCIL), recently met with Goyal to voice their critical concerns regarding the proposed trade agreement.
“The minister gave a patient hearing to the concerns raised and assured the delegation that the government is committed to protecting labour-intensive sectors during the ongoing negotiations under the India-US Bilateral Trade Agreement,” stated the AEPC.
Goyal reiterated that the government would take all necessary actions to safeguard India’s interests, particularly for vulnerable sectors like textiles and apparel, which are essential to the national economy.
The AEPC raised alarms over the potential repercussions if the U.S. were to implement an additional 26% reciprocal tariff on Indian imports, emphasizing that such a move could have detrimental effects on the sector’s exports to America. Sekhri and Agarwal expressed significant concern about the possible impact on the labour-intensive textile and clothing industry, which is integral to India’s export economy and job creation.
They highlighted that clothing and home textiles are among the leading export categories to the U.S. and that any tariff hike would disproportionately affect these areas. The council leaders also warned of the likely decline in exports and job losses, particularly in the micro, small, and medium enterprises (MSME) sector and rural employment clusters.
For context, the Trump administration has put the proposed 26% tariff on Indian goods on hold until July 9. In the fiscal year 2024-25, India’s apparel exports to the U.S. amounted to USD 5 billion, while an Indian delegation is currently in Washington for the next round of trade negotiations.
