Coming up Trumps against tariff threat
The US imported almost $85 billion worth of garments in 2024, of which India accounted for about $10.5 billion. While the latest tariff announcement can be seen as a setback, India still has three aces up its sleeve to neutralise its impact and push firmly towards its $100 billion textile exports target. These aces are concluding the free trade agreement (FTA) with the EU, ensuring the supply of raw material at competitive prices, and an incentive and reforms package tailored for employment generation through apparel exports.
The first ace India must play is to expedite the FTA with the EU. Currently, the EU is the largest garments importer with an import value close to $200 billion. India only captures $5 billion of this against Bangladesh's $25 billion. The primary reason is the 10% duty advantage enjoyed by Bangladesh due to its LDC status, which allows it to export to the EU duty-free. If India were to sign an FTA with the EU on the lines of the recently concluded UK FTA, this disparity will vanish — making Indian exporters highly competitive in the largest market in the world.
The second ace India needs to deal is addressing the high cost of raw material for its textile and apparel industry. Cotton, the lifeblood of our textile industry, carries an import duty of around 10% imposed in 2021. Duties are even higher when it comes to synthetic-fibre-based products. For example, the basic customs duty on polyester fabric is 20%, which raises the cost of synthetic fabric in the market.
While garment exporters are allowed to import fabrics duty-free under the advance authorisation scheme, it is currently extremely restrictive and rigid. A few simple but far-reaching reforms can enable Indian exporters to access fabric at globally competitive prices, on a par with their Bangladeshi counterparts.
First, simplify the input-output norms and allow exporters to import fabrics on self-certification basis with post-export audit, on the lines of the EU. Second, allow exporters to import inputs against export orders or contracts without prior licence. Finally, allow exporters or third parties to pool inputs or maintain bonded warehouses for multi-party use and treat sales of fabric to exporters as deemed exports.
In addition to these, rationalisation of import duties on both cotton and synthetic fibres, yarn, and fabrics would eliminate the substantial disability Indian garment exporters face on account of raw material.
The third ace that India must play is a package of carefully crafted policy measures and reforms for the garment sector to enhance competitiveness to world-beating levels.
Such measures would include a suitable incentive scheme for the garment sector — one that is easy to avail and is export- and job-centric. The scheme would essentially function as an employment-linked incentive (ELI) — rewarding companies not just for production volumes, but for the number of new jobs they create and sustain in the sector.
For it to be truly effective, such a scheme should be skewed towards large manufacturing units that employ, say, 1,000+ workers, to drive economies of scale and higher productivity. The government must also extend the Rebate of State & Central Taxes and Levies (RoSCTL) — which refunds embedded taxes to exporters — beyond 2026 to keep Indian apparel prices competitive globally.
In addition to incentives, the government must fast-track the completion and operationalisation of the new PM MITRA textile parks. These parks should become magnets for textile and garment manufacturers through world-class infrastructure, responsive governance, and easier regulation around land, labour, and environment.
The goal must be to make India the supplier of choice in terms of cost and reliability. The apparel sector can lift millions out of poverty, as seen in Bangladesh, where garment work has empowered women at scale. India can replicate and surpass that model by consciously steering policy to favour labour-intensive growth.
The encouraging news is that global brands are already showing interest. From Japan to West Asia, buyers are in talks to tap into India's expanding production capacity and favourable incentive structure.
This confidence, combined with the right policy push, could help India achieve the government's ambitious target of $100 billion in textile and apparel exports by 2030, up from roughly $30-40 billion (including yarn and fabric) today. Achieving this would vault India into the upper ranks of global apparel exporters, close in on rivals and create an estimated 2.5 crore new jobs by 2030 — a transformation with profound social and economic benefits.
Ashish Dhawan is founder-CEO and Piyush Doshi is operating partner, The Convergence Foundation. The views expressed are personal.
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Hindustan Times
26 minutes ago
- Hindustan Times
India shot down 5 Pak fighter jets and one large aircraft during Op Sindoor: IAF chief
At least five Pakistani combat jets and a large surveillance aircraft were shot down by Indian air defence weapons, primarily the S-400 system, during the four days of hostilities between the two countries in May, Indian Air Force chief AP Singh said on Saturday, the first official acknowledgment of such successes by the Indian side. Air Chief Marshal AP Singh made the remarks while delivering a public lecture in Bengaluru.(ANI Grab ) Air Chief Marshal Singh, who was delivering a public lecture in Bengaluru, said attacks by the Indian military also destroyed or damaged at least two Pakistani command and control centres, at least six big and small radars, two surface-to-air guided weapons (SAGW) systems, and the runways and hangars at the airbases in Sargodha, Rahim Yar Khan, Sukkur, Bholari and Jacobabad. This is the first time that a senior Indian official has publicly revealed the aircraft losses suffered by Pakistan during the hostilities that erupted after India launched Operation Sindoor on May 7 to target terrorist infrastructure across the border in retaliation for the Pahalgam terror attack that killed 26 civilians on April 22. Also Read: Operation Sindoor: 5 first-time facts about India-Pakistan conflict revealed by IAF chief Singh, who made a presentation on attacks carried out by the IAF during Operation Sindoor using satellite imagery and videos from Indian weapon systems, said: '[With] the SAGW systems – mostly [the] S-400 – we have at least five fighters confirmed kills and one large aircraft, which could be either an elint [electronic intelligence] aircraft or an AEW&C [airborne early warning and control] aircraft.' The AEW&C aircraft, he said, was taken out at a distance of almost 300 km, making it the longest ever 'recorded surface-to-air kill'. He described the S-400 air defence system, acquired from Russia, as 'a game-changer' whose range deterred Pakistan's combat aircraft. He said India's military strikes damaged or destroyed at least two command and control centres at Murid and Chaklala, at least six big and small radars, two SAGW systems in Lahore and Okara, the runways at the Sargodha and Rahim Yar Khan airbases, and hangars at the Sukkur, Bholari and Jacobabad airbases. Intelligence reports have indicated that an AEW&C aircraft was destroyed within the hangar at Bholari and some F-16s were damaged at the Shahbaz airbase in Jacobabad, he said. The hangar at the Sukkur airbase housed UAVs, he added. India's air defence systems and missiles had also destroyed a large number of Pakistani drones and long-range weapons, Singh said. The Indian side recovered a lot of wreckage from these drones and missiles which is being studied by the armed forces and the Defence Research and Development Organisation (DRDO) to learn more about the features of Pakistan's weapons systems and their launch sites. Singh said that in the initial stage of Operation Sindoor, the IAF was tasked to target terrorist infrastructure at two sites – the Jaish-e-Mohammed (JeM) headquarters at Bahawalpur and the Lashkar-e-Taiba base at Muridke, both in Pakistan's Punjab province – while the Indian Army asked to target seven other sites located closer to the international boundary and the Line of Control (LoC). Speaking about the Indian government's decision to respond to the Pahalgam attack that was carried out by The Resistance Front (TRF), a proxy for LeT, Singh said: 'It was made very clear that this time it should be an emphatic thing that we do. We must send the message across loud and clear to them, it should not be something just limited to [terrorist] launch pads and training areas. The terrorist leadership should be challenged.' India has responded to other recent attacks carried out by Pakistan-based terror groups by carrying our surgical strikes on terrorist bases across the LoC or with an attack such as the air strike on a JeM facility at Balakot in 2019. While Singh didn't give details of the weapons used to strike the JeM and LeT headquarters, reports have said the air-launched version of the BrahMos cruise missile and other missiles were used. He said the IAF decided to 'go with long-range weapons to keep ourselves safe from [Pakistan's] air defences' and since the targets were all 'hardened structures'. After the terrorist infrastructure was targeted early on May 7, India's Director General of Military Operations (DGMO) informed his Pakistan counterpart that only terrorist targets were hit to 'take revenge for Pahalgam'. Singh said India's DGMO also made it clear there was 'no intent to attack any military targets [and] so we can call it off here' but the Pakistani side made it clear they would respond. Pakistan's drone and missile retaliation foiled by Indian air defences Pakistan retaliated with drones, loiter munitions and missiles. It also attempted to saturate air defence systems at airfields and army installations by using a large number of drones but these were neutralised by anti-drone systems and anti-aircraft guns before they could cause any damage, Singh said. After intelligence reports suggested Pakistan was 'planning something very big' on May 9, the Indian side decided it would respond to attacks on any military installations by targeting key Pakistani military facilities. When the Pakistani attack came, the Indian side responded with strikes on airbases and other facilities across the border, he said. 'That night, we did not have any hold bar and we decided we will go and we will attack pan-front, we will stretch his resources. The idea was to give him an indication that 'Look, we can attack you deep inside, at will, wherever we want to',' Singh said. Thereafter, Pakistan's DGMO sought talks with the Indian side and this led to the stopping of hostilities on May 10. Singh attributed India's success to 'very clear political will' and clear directions to the armed forces without any restrictions. 'If there were any constraints, they were self-made. The forces decided what will be our rules of engagement…what will be the escalation ladder that we want to ride on…There were no, I repeat, no restrictions on us,' he said, adding the Chief of Defence Staff, Gen Anil Chauhan, and National Security Adviser Ajit Doval played a key role in strengthening synergy between the military and other agencies. Singh listed several takeaways from Operation Sindoor, including the primacy of air power. 'People have come to realise that air power is the first responder that any country has and air power…can react in quick time, attack deep inside and attack with precision to achieve your objectives without any collateral,' he said. Noting that the effective use of air power resulted in the conflict ending in less than four days, Singh said another takeaway was that the country cannt afford to be continuously at war. 'If we can deter, there is nothing better than that, but if we are forced, if the war starts…we should be very clear that we can reach a stage where we can terminate that,' he said. Singh cautioned against drawing the wrong lesson from the use of drones in conflicts worldwide, and said: 'Drones are very good means for many things but I don't think just drones can win you wars. You will require the bigger weapons, you will require the long-range weapons, you will require the precision strike capability because drones are more of a nuisance.'
Hindustan Times
26 minutes ago
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1962 war not failure of non-alignment policy but of China policy: Ex-ambassador Shivshankar Menon
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Time of India
26 minutes ago
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Satellite images, hundreds of coffins in Pakistan are testament to success of Op Sindoor: BJP's Dinesh Sharma
Dinesh Sharma stated Operation Sindoor's success is evident through satellite images and coffins in Pakistan. India initiated the operation responding to the Pahalgam terror attack. Indian forces targeted terror infrastructure, eliminating over 100 terrorists. Pakistan retaliated, prompting India to damage radar, communication centers, and airfields. Air Chief Marshal AP Singh confirmed the destruction of Pakistani fighter aircraft during the operation. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Bharatiya Janata Party (BJP) Rajya Sabha MP Dinesh Sharma on Saturday said the satellite images and the hundreds of coffins in Pakistan are a testament to the success of Operation Sindoor "The satellite images that have come in, along with the hundreds of coffins in Pakistan, are a testament to the success of Operation Sindoor. The frustration of one developed nation is also showing that, despite their efforts, they could not save Pakistan. Their 11 camps were destroyed and many of their airstrips, from where terrorist activities were executed, also came under the radar of our attacks,' the Rajya Sabha MP launched Operation Sindoor on May 7 as a decisive military response to the April 22 Pahalgam terror attack in which 26 people were killed. The Indian Armed Forces targeted terror infrastructure in Pakistan and Pakistan-occupied Jammu and Kashmir, leading to the death of over 100 terrorists affiliated with terror outfits like the Jaish-e-Mohammed Lashkar-e-Taiba and Hizbul Mujahideen After the attack, Pakistan retaliated with cross-border shelling across the Line of Control and Jammu and Kashmir as well as attempted drone attacks along the border regions, following which India launched a coordinated attack and damaged radar infrastructure, communication centres and airfields across 11 airbases, including Nur Khan airbase in today, Chief of the Air Staff Air Chief Marshal AP Singh said that the Indian Armed Forces had destroyed at least five Pakistfighter aircraft and one large aircraft during Operation Sindoor."We have at least five fighters with confirmed kills and one large aircraft, which could be either an ELINT aircraft or an AEW&Caircraft, which was taken on at a distance of about 300 kilometres. This is actually the largest ever recorded surface-to-air kill that we can talk about," Air Chief Marshal AP Singh also credited the "political will" of the Central government for the success of Operation Sindoor that allowed the Indian Armed Forces (IAF) to conduct the operations without any constraints."A key reason for success was the presence of political will. There was very clear political will and very clear direction given to us. No restrictions were put on us... If there were any constraints, they were self-made. The forces decided what the rules of engagement would be. We decided how we wanted to control the escalation. "We had full freedom to plan and execute," Air Chief Marshal AP Singh said.
