Textile Exporters Seek 10% Direct Subsidy from Govt to Survive in a post -Tariffs Era – CNBC TV18

The textiles and apparel industry, which contributes 2.3% to India’s GDP, 13% of Industrial Production, and 12% of Exports, is the Country’s Second-Largest Emploorge, Supporting 45 Million Livelihoods. The sector is now facing uncertain as its largest expenses, the united states, movies to levy 50% tarifs on important from India.

A 21.6% Year-on-Year Rise in Overall Exports to the Us during the first four months of the current fiscal indicates Front-loading of shopments to beat the tariff deadline. The industry is also also banking on the upcoming festive season and diversification of expenses to soften the impact.

Additional, expectations are high from a possible gst rate cut to spur domestic demand and the Forthcoming Export Promotion Mission to ENSURE ADEQUATE CRADITE CREDIT Availability.

Anil Peshawari, Chairman of Noida-Based Textiles and Apparel Export Meenu Creation LLP and Executive Committee Member of the Apparel Export Promotion Council (AEPC), HIPANTED APARTED APORTED APORTED APORELE disadvantage compared to Garment Exporters from Bangladesh, Vietnam, Indonesia, and Sri Lanka, which face tarifs of 18–20% in the US.

“India’s expenses will anyway cost 30% more for Buyers,” He Said, Calling for a Direct Government Subsidy of at Least 10% to Help Bridge The tariff Gap. He Warned That Companies May Soon Find It Difential to Retain Workers.

Peshawari noted that 30% of India’s Textile Exports are directed to the US, and diversification on this scale is not feasible. He said the industry could only fill one-third of the gap left by the US market, adding that markets in australia, canada, and latin America are already saturated. In the US, He Said, Retailers will need to increase price, lead to fewer orders and heightened uncertain.

According to Him, Measures Such as GST CUTS and Interest Subvention will not help, as experts Alredy Receive GST refunds and Interest Subvention does Little in Times of Weak Demand.