Citi says that the tariff hike is a huge setback for India’s textile and apparel exporters, as it has further complicated the challenging situation
Voicing concerns about the potential adverse impact of the effective 50 per cent United States (US) tariff rate for India, the Confederation of Indian Textile Industry (Citi) has stated that the government should fast-track the introduction of measures to limit the hardship likely to be faced by local textile and apparel exporters.
“The US tariff announcement of 6 August is a huge setback for India’s textile and apparel exporters as it has further complicated the challenging situation we were already grappling with and will significantly weaken our ability to compete effectively vis-à-vis many other countries for a larger share of the US market,” highlighted Rakesh Mehra, Chairman, Citi.
Citi also looks forward to the bilateral trade agreement (BTA) between India and the US becoming a reality soon. Mehra pointed out that a well-rounded BTA with the US, which takes proper care of India’s sovereign interests and is also fair and balanced, could be a win-win proposition for both nations.
“It is our fervent appeal to the government to urgently take steps to come to the aid of India’s textile and apparel sector during these hugely testing times, given the government’s strong commitment to increase the competitiveness of local industry and help our companies become major players on the world stage,” Mehra added.
The US is India’s largest market for textile and apparel exports. After a promising performance in the first quarter of the 2025 calendar year, there was a notable slowdown in textile and apparel exports from India to the US in June 2025, Citi added.
Citi noted that the new US rate for Bangladesh is 20 per cent. The latest US tariff rate for Indonesia and Cambodia are 19 per cent each. Currently, China is the biggest exporter of textiles and apparel items to the US, followed by Vietnam, India, and Bangladesh, the official statement added.
