Perspectives
- With an emphasis on the US and EU markets, CITI is supporting government initiatives to increase textile and apparel (T&A) exports to a $100 billion objective by 2030.
- Rakesh Mehra, the chairman of CITI, advocates for ongoing supporting policies and smart marketing initiatives to improve India’s competitiveness in the global textile industry and advises using possible US tariff hikes on Chinese goods to increase market share.
With the goal of reaching an export target of $100 billion by 2030, the Confederation of Indian Textile Industry (CITI) has urged the government to put policies in place that would encourage investment and scale in the textile and apparel (T&A) industry. According to the report, export promotion programs are more important than ever because the US and EU markets are crucial to reaching this objective.
Approximately 27% of India’s T&A exports are now to the US. Exports to the US have increased at a compound annual growth rate (CAGR) of around 3.3% over the last five years. According to a news statement from CITI chairman Rakesh Mehra, exports must speed to a CAGR of almost 16% in order to fulfil the ambitious 2030 aim.
Mehra emphasised the possible advantages brought forth by the most recent political shifts in the United States. As one of his first actions after taking office, Trump, the recently elected US president, is probably going to declare more tariffs on Chinese goods. This tariff change offers India a special chance to increase its market share in the US as China is a significant exporter of T&A products to the US, he added.
CITI highlights the significance of strategic marketing strategies, including trade shows, buyer-seller meetings, and collaborations with US store groups, in order to capitalise on this potential. In order to increase India’s presence and visibility in the US market, several initiatives are essential.
Additionally, CITI supports the extension of beneficial programs such as the Interest Equalisation Scheme (IES) and the Remission of Duties and Taxes on Export Products (RoDTEP) for export-oriented units (EoU) and advance authorisation (AA)/special economic zones (SEZ) past their current expiration date of December 31, 2024. To guarantee sustained growth, income tax reduction for micro, small, and medium-sized businesses (MSMEs) in the textile industry was also suggested.
Mehra ended by voicing hope that India’s T&A sector may make a substantial contribution to the country’s export goals and position itself as a worldwide leader in textiles and clothing with the correct combination of government assistance and proactive business initiatives.