Sectors including agriculture, meat, processed food, plastics, textiles and clothing will face over 30 per cent import duties in the US market from April 9, according to the GTRI analysis. Goods from India are already facing a 25 per cent tariff on steel, aluminium, and auto. For the remaining products, India is subject to a base line tariff of 10 per cent between April 5-8. Then the tariff will rise to country-specific 27 per cent starting April 9. Over 60 countries are affected by the measures.
Source: Rediff.com
The U.S. has imposed higher tariffs on China, Vietnam, Thailand, and Bangladesh, creating an opportunity for India in global trade, says GTRI’s Ajay Srivastava. India faces a 25% tariff on steel and autos, 27% on most goods, but none on pharmaceuticals or semiconductors. Lower tariffs boost India’s competitiveness in textiles, electronics, and semiconductors, attracting investments. The imposition of higher reciprocal tariffs by US President Donald Trump on several Asian and European countries, including China, Vietnam, Taiwan, Thailand, and Bangladesh, presents a strategic opportunity for India to strengthen its position in the global trade and manufacturing said GTRI Founder Ajay Srivastava.
Source: The Economic Times
Synopsis The Trump administration revised reciprocal tariff rates for 14 countries, including India, lowering India's rate from 27% to 26%. South Korea, Botswana, and others experienced fluctuations. Initially, a global 10% tariff was applied on April 5, with additional increases for specified countries. Notably, some overseas territories were omitted from the annex. A White House document on Friday showed that the Trump government's reciprocal tariffs have been revised for at least 14 countries, including India. India’s rate was originally listed at 27 per cent, as against the 26 per cent shown previously by Trump during the announcement on April 2. However, the latest annex document shows that the tariffs have been revised down to 26 per cent. US President Donald Trump, a 'friend' of Indian Prime Minister Modi, on April 2 said that New Delhi has not been treating Washington 'right' and therefore has slapped the fifth-largest economy with 26 per cent tariffs. This move, part of a broader protectionist policy, aims to boost US domestic manufacturing and reduce its trade deficit with India, which stood at $35.31 billion in 2023-24.
Source: The Economic Times
26 per cent tariff on India is expected to benefit India's apparel and textile sectors, making it a favorable destination. Higher tariffs on competitors like Vietnam, China and Pakistan. The US government on Thursday, 3 April has announced a 26 per cent reciprocal tariff on Indian imports. The imposition will help India to boost its apparel and textiles exports as the US is the largest importer of India's textiles. The imposition will help India's textile industry as the tariffs on India's competitors are much higher. Vietnam faces a 46 per cent tariff, Bangladesh 37 per cent, Cambodia 49 per cent, Pakistan 29 per cent and China 34 per cent, over and above the additional 20 per cent. This makes India a preferred destination for the US for its apparel and textiles demands. In 2024-25, the United States had bought India's textiles of around USD 36 billion. From 21 per cent of overall textile exports from India in 2016-17 and 2017-18, the US share rose to 25 per cent in 2019-20 and 29 per cent in 2022-23.
Source: Times Now
Fitch Ratings warns that new US tariffs could lead to a recession and lower global growth. The tariffs, effective from 2 April, will raise consumer prices, reduce corporate profits, and affect market value. Asia's growth outlook is particularly impacted. Some Latin American countries may benefit, but widespread damage to global demand is expected. The latest round of US tariffs announced on 2 April could have sweeping economic consequences, pushing up the risk of a recession in the United States and dragging down global growth, according to Fitch Ratings. The ratings agency said the new tariffs, announced on what is labelled as “Liberation Day” by the US administration, go far beyond what it had previously expected and are already altering the global economic outlook. The tariff regime now imposes a minimum rate of 10% on all US trade partners, with significantly higher levies on 57 selected countries. As a result, the effective tariff rate (ETR) for EU imports into the US has jumped to about 20%, while the rate on Chinese goods has surged to 64%. These figures compare with Fitch’s earlier March assumptions of 15% for the EU and 35% for China. Other Asian economies have also been hit hard. Vietnam now faces a 46% tariff, Thailand 36%, Taiwan 32%, India 26%, South Korea 25%, Malaysia 24% and Japan 24%. Sector-specific exclusions—such as semiconductors, pharmaceuticals, copper and lumber—may be negotiated separately.
Source: The Economic Times
Textile-clothing exports are targeted to reach $100 billion by 2030. Of this, exports of man-made fibre textiles (MMF) and technical textiles are expected to contribute $21 billion
The Government has urged the textile industry to focus on research to make the sector more sustainable in the long run. Giriraj Singh, Union Textile Minister said the global trend is shifting towards man-made fibre textiles from natural fibre textiles as MMF is cheaper. Research and development in India should focus on green manufacturing of MMF textiles as there is a growing demand for sustainability and circularity, he said at the recent annual event of the Man-Made Fiber and Technical Textiles Export Promotion Council (MATEXIL). Globally, he said leading brands and retailers are increasingly focusing on recyclable textiles and the industry is therefore turning toward eco-friendly and sustainable MMF textiles. In technical textiles, non-woven fabrics are being produced more. These are thermal or chemical processes with numerous benefits, and their importance is particularly high in the Asia-Pacific and European regions, said Singh.
Bhadresha Dodhia, Chairman, MATEXIL said the main challenge faced by domestic MMF textile industry is the lack of technical expertise in processing and finishing. Therefore, he said it is essential to collaborate with leading international players in the MMF sector, upgrade technology to international standards, and increase automation.
MATEXIL has developed a new website and a trade dashboard to provide comprehensive information and data related to the trade of MMF and technical textiles. Reliable and customized textile data will help the government in formulating policies more effectively.
Source: The Business Line
The reciprocal tariff by the US is likely to create new opportunities for the Indian textile sector. If a free trade agreement is signed between the two countries, it can give global competitive strength to the Indian textile manufacturers. The industry is also demanding a subsidy to promote trade similar to the practice in China. Among major textile products that are exported to the US are garments, home furnishings, and others. Being the largest man-made fabric manufacturing hub in the country, Surat has a sizeable share in the textile export to the USA. Manufacturers are now closely monitoring the situation. "The tariff on other major exporters of textiles to the US is higher in China and Vietnam than in India. This will provide an opportunity for Indian manufacturers to compete globally against the major manufacturing centres," said Bharat Gandhi, chairman of the Federation of Indian Associations of Surat Weavers Industry (FIASWI). Of India's total textile export, 28% goes to the US. Of the total MMF manufacturing in India, over 60% is made in the city and nearby industrial hubs.
Source: The Business Line
Pabitra Margherita the Minister of State (MoS) for Textile has said that the government is focusing on high tech and high growth product segment to achieve Textile 2030 vision. Margherita said the government is leveraging large scale plug and play infrastructure, keeping sustainability at the core, while ensuring large-scale livelihood opportunities. He stated the government’s initiatives are providing impetus to traditional sectors including handloom and handicrafts and becoming Atma-nirbhar in raw material value chain by implementing various schemes/initiatives across the country. The major schemes/initiatives include PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks Scheme which seeks to create a modern, integrated, world class textile infrastructure; Production Linked Incentive (PLI) Scheme focusing on Man Made Fibre (MMF) Fabric. Besides, he said Ministry of Textiles is implementing National Handicrafts Development Programme and Comprehensive Handicrafts Cluster Development Scheme for promotion of handicraft artisans. Under these schemes, support is provided for marketing, skill development, cluster development, direct benefit to artisans, infrastructure and technology support etc. The textile industry is one of the largest sources of employment generation in the country, employing over 45 million people directly. A total of $35,874 million exports of Textiles & Apparel including Handicrafts were reported during 2023-24.
Source: Investment Guru
The government has started implementing Production Linked Incentive (PLI) Scheme for Textiles on Pan India basis, Pabitra Margherita the Minister of State (MoS) for Textile said in a written reply to a question in Rajya Sabha. The MoS, quoted by Ministry of Textiles in a statement, added PLI scheme is aimed at promoting the production of MMF Apparel, MMF fabrics and products of Technical Textiles to achieve size and scale and to become competitive. As per Ministry’s Budget Estimate 2025-26, approx. 22 per cent of the budget is dedicated for PLI Scheme for Textiles. Out of the 74 applicants selected under the scheme, 24 are MSMEs. Turnover of Rs. 2,16,760 crore including exports is projected for the scheme period, the MoS added. In addition, he added that the government is implementing Rebate of State and Central Taxes and Levies (RoSCTL) scheme for Apparel/Garments and Made-ups in order to enhance competitiveness by adopting principle of zero rated exports. Further, textiles products not covered under the RoSCTL scheme are covered under Remissions of Duties and Taxes on Exported Products (RoDTEP) along with other products.
Source: The Print
Bangladeshi textile industry leaders expressed concerns about significant US tariffs, which increased to 37%, threatening the nation's garment export market. The tariffs on cotton and polyester products could shift buyers to other cost-competitive countries, presenting a substantial challenge for Bangladesh's economy. Bangladeshi textile industry leaders said on April 3, 2025, that US tariffs posed a "massive blow" to the world's second largest garment manufacturer, which accounts for some 80 percent of the South Asian nation's exports. "Buyers will go to other cost competitive markets -- this is going to be a massive blow for our industry," said Rakibul Alam Chowdhury, chairman of RDM Group, a major manufacturer with an estimated $25 million turnover. "We will lose buyers." US President Donald Trump on Wednesday slapped punishing new tariffs of 37 percent on Bangladesh, hiking duty from the previous 16 percent on cotton and 32 percent on polyester products.
Source: The Economic Times
