After the US imposes 50% tariff on Indian products, India plans to carry out special campaign in 40 major countries including Britain, Japan, South Korea to promote textile exports. This information was given by an official on Wednesday. According to PTI news, these 40 countries also include important markets such as Germany, France, Italy, Spain, Netherlands, Poland, Canada, Mexico, Russia, Belgium, Turkey, United Arab Emirates and Australia. The official says that India will work under a strategic scheme in these markets, in which the Indian Industry Group, Export Promotion Council and the country’s mission will play an important role.
Real opportunity in these 40 countries
According to the news, the purpose of this initiative is to establish India as a trusted supplier of quality, stability and innovation textile products. India already exports textiles to more than 220 countries, but these 40 countries have real opportunities, in total about 590 billion dollars of clothes and apparel. India’s current market share is only 5-6%, which aims to increase.
Exports of over $ 48 billion will be affected
The government is paying special attention to both traditional and new areas in these markets to promote exports widely. India’s exports of more than $ 48 billion will be affected due to 50% tariff implemented by the US from August 27. Especially textile, gem-jewelery, shrimp, leather and footwear, animal products, chemicals, electrical and mechanical machinery areas will be affected by it.
The size of the textile and apparel sector is estimated at $ 179 billion in FY 2024-25, with $ 142 billion domestic market and $ 37 billion exports. The import market of the region globally is worth $ 800.77 billion. India is the sixth largest exporter with 4.1% stake in world trade.
Export Promotion Council will play an important role
The official said that Export Promotion Council will be an important part of this strategy of India. These councils will understand the demand of the market, connect major production centers such as Surat, Panipat, Tirupur, Bhadohi with target countries, and promote India’s participation in international trade fairs and demonstrations. It will also marketing various sectors under ‘Brand India’. These councils will help exporters in using free trade agreement (FTA), following stability standards and obtaining necessary certificates. The ongoing dialogue with FTA and several countries will make Indian exports competitive and there is immense potential for development in the region.
Textile area affects the most
General Mithileshwar Thakur, secretary of the Appareal Export Promotion Council, said that the textile sector, which is exported to the US of $ 10.3 billion, has been affected the most. After 25% tariff, the industry could handle it, but the additional 25% tariff increased to 50%, causing the Indian textile industry to almost from the US market. Thakur said that due to this tariff increase, India is facing 30-31% more fees than competitive countries like Bangladesh, Vietnam, Sri Lanka, Cambodia and Indonesia.
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