India's contrast to Trump's 50% tariff: Delhi is planning outreach programs in 40 countries to print textile exports
India is planning dedicated outreach programs in 40 countries, including the UK, Japan and South Korea, to push the export of textiles amid a 50 percent tariff imposed by the US on Indian products, an official said on Wednesday. Other countries include Germany, France, Italy, Spain, the Netherlands, Poland, Canada, Mexico, Russia, Belgium, Turkiye, the United Arab Emirates and Australia. “In each of these 40 markets, it is proposed to practice a targeted approach and position itself as a reliable supplier of quality, sustainable and innovative textile products starring the Indian industry, including EPCs and Indian missions in these countries,” the official said. India is already exporting to more than 220 countries, but the 40 importing countries have the real key to diversification. Together, these 40 countries represent more than USD 590 billion in textile and clothing imports, which provide great opportunities for India to improve its market share, which is currently only about 5-6 percent, the official said. “With the recognition of this, the government is planning dedicated outreach programs in each of these 40 countries, focusing on traditional markets and emerging markets,” the official added. The 50 percent steep rate on Indian goods entering the United States, which came into effect from August 27, would affect exports of more than $ 48 billion. The sectors that would contain most of the high import duties imposed by the Trump administration include textiles/ clothing, gemstones and jewelry, shrimp, leather and shoes, animal products, chemicals and electric and mechanical machinery. In 2024-25, the total size of the textile and clothing sector was estimated at USD 179 billion, which consists of a domestic $ 142 billion market and export worth $ 37 billion. At the global level, the textile and clothing import market was valued at $ 800.77 billion in 2024. India, with a 4.1 percent share in the world trade, is the sixth largest exporter and has established its export footprint in 220 countries. The official also said that export promotion boards (EPCs) would be the backbone of India’s diversification strategy by performing market mapping, identifying high demand products and linking specialized production groups such as Surat, Panipat, Tirupur and Bhadohi to opportunities in top 40 countries. They will meet India’s participation in international exhibitions, trade festivals and buyer sellers, while also feeding sector -specific campaigns under a united brand India Vision. The councils will further guide exporters on the use of free trade agreements (FTAs), comply with sustainability standards and obtaining the necessary certificates. “FTAs and negotiations with several of these geographical areas will help make Indian exports competitive, and there is a great potential for growth in these areas,” the official added. Mithileshwar Thakur, secretary general, Apport Export Promotion Council (AEPC), said that the textile sector, with USD exports of 10.3 billion, one of the worst sectors, only 12 billion dollars and electric and mechanical machinery, with USD $ 9 billion. “The Apparel Industry was reconciled to the 25 per cent reciprocal tariff announced by the USA, as it was prepared to absorb a part of the tariff increase. But, the additional burden of another 25 per cent tariff, taking the overall reciprocal tariff against india to 50 per cent, Has Effectively driven the indian apparatus industry out of the us market as the gap of 30-31 per cent tariff disadvantage fish-a-vis Major Competing Countries Like Bangladesh, Vietnam, Sri Lanka, Cambodia and Indonesia, “said Thakur. He said the industry expects an urgent relief in the form of fiscal government support to maintain and survive in the US market until favorable trade conditions are restored by a bilateral trade agreement with the US. “This is extremely critical as it is not easy to recover the lost land and regain the market share as soon as buyers move to other cost -competitive locations. Meanwhile, we also strengthen our efforts to diversify the market and look at every possibility of benefiting from the trade agreement with the UK and EFTA to control and contain the damage,” he added. (With input from PTI)