Trump win likely to strengthen India’s textile trade with the USA, says CITI

The Confederation of Indian Textile Industry (CITI) has welcomed Donald J. Trump’s victory as President of the United States, hoping it will boost India’s textile and apparel (T&A) trade with its largest foreign market. The US accounted for over 27 per cent of India’s total T&A exports in 2023, underscoring the US’s pivotal role in the global expansion of the sector.

CITI chairman Rakesh Mehra underlined the growing trend of exports to the US, stating, “In comparison to the same period previous year, India’s T&A exports to the US grew by almost 6 per cent during the current fiscal year. This outpaced the growth rates of the main rivals, which were 2.2 per cent for China, 0.4 per cent for Vietnam, and -2.2 per cent for Bangladesh. India’s improved performance highlights its growing market share in this important field and shows that American customers are getting more interested in it.”

Mehra underlined that the previous Government of President Trump prioritised diversifying trade sources in order to lessen reliance on China, a strategy that is consistent with India’s goals to improve its standing in the American market.

High tariff rates, which can reach up to 32 per cent for some clothing categories, continue to be a major obstacle. Mehra claims that this limits India’s potential to grow its market share even more.

CITI is optimistic that the new administration will collaborate closely with India to enable tariff adjustments, establishing India as a major supplier of high-quality textile and clothing goods to the United States. This might start a new chapter in the textile trade relationship between the United States and India, giving American consumers and retailers a worthwhile substitute for China, he said.

Source: https://in.apparelresources.com/