Latest news with #CITI
Fibre2Fashion
2 days ago
- Business
- Fibre2Fashion
CITI urges urgent government action after sharp US tariff hike
The Confederation of Indian Textile Industry (CITI) is deeply concerned about the potential adverse impact of the effective 50 per cent US tariff rate for India announced on August 6 on the Indian textiles and apparel sector. CITI has expressed deep concern over the effective 50 per cent US tariff on Indian textile and apparel imports, saying it could harm India's export competitiveness. Urging swift government action, CITI highlighted slowing exports to the US and called for a balanced bilateral trade agreement to support the sector amid rising global competition. CITI feels that the government should fast-track the introduction of measures to limit the hardship likely to be faced by local textile and apparel exporters following the most recent US tariff decision. 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. India's exports of textile and apparel items to the world's No. 1 economy grew by only 3.3 per cent compared to June 2024. The rate of growth was much lower compared to India's earlier growth trajectory and significantly below the growth rates achieved by competitors like Vietnam and Bangladesh, CITI said in a release. 'The US tariff announcement of August 6 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,' CITI chairman Rakesh Mehra said. '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. India has set itself a target of achieving textile exports worth $100 billion by 2030. The new US rate for Bangladesh is 20 per cent. The latest US tariff rate for Indonesia and Cambodia are 19 per cent each. The tariff rate for Vietnam is 20 per cent. Currently, China is the biggest exporter of textiles and apparel items to the US, followed by Vietnam, India, and Bangladesh. Mehra said CITI also looks forward to the bilateral trade agreement (BTA) between India and the US becoming a reality soon. '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,' Mehra pointed out. Fibre2Fashion News Desk (HU)
Time of India
3 days ago
- Business
- Time of India
Indian textile exporters halt US orders amid doubled tariff impact
Indian textile and apparel exporters from Tiruppur, Noida and Surat will put on hold their manufacturing of US orders after US president Donald Trump doubled the tariff to 50% on Wednesday, as they say uncertainty has increased manifolds. The revised tariff has reduced the competitiveness of the Indian textile and apparel sector in comparison to Bangladesh, Vietnam, Cambodia, whose tariffs are much less than India. The tariff for Bangladesh is 20%, 19% for Indonesia and Cambodia, and 20% for Vietnam. Productivity Tool Zero to Hero in Microsoft Excel: Complete Excel guide By Metla Sudha Sekhar View Program Finance Introduction to Technical Analysis & Candlestick Theory By Dinesh Nagpal View Program Finance Financial Literacy i e Lets Crack the Billionaire Code By CA Rahul Gupta View Program Digital Marketing Digital Marketing Masterclass by Neil Patel By Neil Patel View Program Finance Technical Analysis Demystified- A Complete Guide to Trading By Kunal Patel View Program Productivity Tool Excel Essentials to Expert: Your Complete Guide By Study at home View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program A Sakthivel, chairman of Tiruppur Exporters Association , said Indian exporters have decided to stop manufacturing the orders for the US. 'The increased tariff will definitely impact the textile and apparel exports for the next 30-40 days till such time that India works out a favourable Bilateral Trade Agreement with the US," he said. Sanjay Jain, past president, Confederation of Indian Textile Industry (CITI), said for the time being, it is curtains down for textile exports. 'New orders will not come. Old orders will have to be shipped at a loss. We will see a lot of unemployment in labour intensive sectors like textile and leather,' he said. Currently, China is the biggest exporter of textiles and apparel items to the US, followed by Vietnam, India and Bangladesh. Live Events 'The doubling of US tariff 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,' said Rakesh Mehra, chairman of CITI. The US is India's largest market for textile and apparel exports. India's garment and textile exports to the US fell for the third consecutive month in June, despite increasing 3.3% year-on-year, CITI said on Wednesday, citing data of the Office of Textiles and Apparel, which is part of the International Trade Administration of the United States. This is in sharp contrast to a 15-25% year-on-year growth in India's textile and apparel exports to the US in the first three months of 2025. However, with the announcement of tariffs in April, trade started declining. In contrast, Vietnam and Bangladesh saw an increase in garment and textile exports during the month of June, with a 26.2% and 44.6% year-on-year surge, respectively.
Time of India
4 days ago
- Business
- Time of India
Textile sector urges govt to scrap 11% cotton import duty
Pune: India's textile industry has suggested that the government could offer to remove the 11% duty on raw cotton imports and use it as a tool to negotiate favourable terms for the country's textile and garment sectors during bilateral trade discussions with the US. ET had reported earlier citing officials that New Delhi could consider lowering or completely eliminating import levies on American walnuts, almonds, apples and cranberries while seeking to forge trade ties with Washington. Productivity Tool Zero to Hero in Microsoft Excel: Complete Excel guide By Metla Sudha Sekhar View Program Finance Introduction to Technical Analysis & Candlestick Theory By Dinesh Nagpal View Program Finance Financial Literacy i e Lets Crack the Billionaire Code By CA Rahul Gupta View Program Digital Marketing Digital Marketing Masterclass by Neil Patel By Neil Patel View Program Finance Technical Analysis Demystified- A Complete Guide to Trading By Kunal Patel View Program Productivity Tool Excel Essentials to Expert: Your Complete Guide By Study at home View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program The textile industry needs high-quality, contamination-free cotton, which meets global compliances as raw material for export-quality garments. Removing the importer duty can not only be a good negotiation tool but will also help make exports more competitive by reducing the cost on cotton imports, said industry leaders. India imposed import duty on cotton in February 2022. The share of the US in India's cotton imports has since reduced to an estimated 19% in fiscal 2024-25 from 40-50%. As duties made imported cotton expensive, India's textile industry had shifted to relatively cheaper Brazilian cotton to compete with Bangladesh and Vietnam, which had access to cheaper US cotton. "We have lost a lot of export of value-added cotton textile and garments," said K Selvaraju, secretary-general of the Southern India Mills Association . Live Events The Ministry of Textiles has a target to expand India's textile industry to $350 billion by 2030, including exports of $100 billion. The current market size is $180 billion. However, the industry has been facing an acute shortage of cotton, which is expected to aggravate this year as production in the 2024-25 crop year is expected to be the lowest after 2008-09. The country is also likely to have a historically lowest stock at 3 million bales (each weighing 170 kg), which is equivalent to one month's consumption. Typically, the stock lasts for a month and a half to two months. "As a result of the import duty on cotton, domestic cotton prices have consistently been higher than the global prices, impacting the competitiveness of the entire value chain," said Chandrima Chatterjee, secretary general of the Confederation of Indian Textile Industry (CITI). Domestic traders are offering cotton by adding the import duty equivalent of 11% to the prevailing cotton prices, the CITI had informed the government in a letter. "If we remove the import duty on cotton, it can be used as a negotiation tool during the bilateral trade agreement discussions," said Chatterjee. The user industry has reported that the Cotton Corporation of India, which procures cotton at the minimum support price from farmers, is also adding import duty equivalent to the price when it sells the fibre. It thus makes domestic cotton expensive compared with international prices.
Economic Times
4 days ago
- Business
- Economic Times
Textile sector urges govt to scrap 11% cotton import duty
India's textile sector proposes a strategic move. They suggest eliminating the 11% duty on raw cotton imports. This could be a bargaining chip in trade talks with the United States. The goal is to secure favorable terms for Indian textiles and garments. Removing the duty may boost export competitiveness. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Pune: India's textile industry has suggested that the government could offer to remove the 11% duty on raw cotton imports and use it as a tool to negotiate favourable terms for the country's textile and garment sectors during bilateral trade discussions with the had reported earlier citing officials that New Delhi could consider lowering or completely eliminating import levies on American walnuts, almonds, apples and cranberries while seeking to forge trade ties with textile industry needs high-quality, contamination-free cotton, which meets global compliances as raw material for export-quality garments. Removing the importer duty can not only be a good negotiation tool but will also help make exports more competitive by reducing the cost on cotton imports, said industry imposed import duty on cotton in February 2022. The share of the US in India's cotton imports has since reduced to an estimated 19% in fiscal 2024-25 from 40-50%. As duties made imported cotton expensive, India's textile industry had shifted to relatively cheaper Brazilian cotton to compete with Bangladesh and Vietnam, which had access to cheaper US cotton."We have lost a lot of export of value-added cotton textile and garments," said K Selvaraju, secretary-general of the Southern India Mills Association The Ministry of Textiles has a target to expand India's textile industry to $350 billion by 2030, including exports of $100 billion. The current market size is $180 the industry has been facing an acute shortage of cotton, which is expected to aggravate this year as production in the 2024-25 crop year is expected to be the lowest after country is also likely to have a historically lowest stock at 3 million bales (each weighing 170 kg), which is equivalent to one month's consumption. Typically, the stock lasts for a month and a half to two months."As a result of the import duty on cotton, domestic cotton prices have consistently been higher than the global prices, impacting the competitiveness of the entire value chain," said Chandrima Chatterjee, secretary general of the Confederation of Indian Textile Industry (CITI).Domestic traders are offering cotton by adding the import duty equivalent of 11% to the prevailing cotton prices, the CITI had informed the government in a letter."If we remove the import duty on cotton, it can be used as a negotiation tool during the bilateral trade agreement discussions," said user industry has reported that the Cotton Corporation of India, which procures cotton at the minimum support price from farmers, is also adding import duty equivalent to the price when it sells the fibre. It thus makes domestic cotton expensive compared with international prices.
New Indian Express
6 days ago
- Business
- New Indian Express
Over 2 million jobs at risk in apparel manufacturing sector due to Trump tariff
The Indian apparel and textile industry is facing a potential crisis with the latest tariff rates announced by the U.S. government, which industry leaders warn could lead to over 2 million job losses and a significant downturn for the sector. The new US tariff rate for India has been set at 25%, placing it at a significant disadvantage against major competitors like Bangladesh and Vietnam, which have been placed in lower tariff brackets of 20%. Indonesia and Cambodia have an even lower rate of 19%. The Indian apparel industry was comfortably placed with the originally announced reciprocal tariff structure as it enjoyed tariff advantage vis-à-vis major competitor countries. The liberation day tariff announced originally by the Trump administration against India was 26% whereas it was 37% against Bangladesh, 46% against Vietnam, 44% against Sri Lanka and 145% against China. The US is the top destination for garment exports from India occupying 33-34% of share, having exports worth $5.333 billion in 2024-25. India commands 6.1% share in their global import of apparel worth US$85.8 billion The Confederation of Indian Textile Industry (CITI) expressed serious concern, stating that the new tariff structure compounds an already challenging situation. CITI Chairman Rakesh Mehra said, 'The latest U.S. tariff announcement, following which the tariff rates have been substantially reduced for many countries, including Bangladesh, against whom we compete for a larger share of the U.S. market, will compound the difficulties for India's textile and apparel exporters as we will be handicapped by a severe duty disadvantage.' The industry's concerns are echoed by the Apparel Export Promotion Council (AEPC). Mithileshwar Thakur, AEPC's secretary general, noted that the new tariffs "changes everything."
