Amid Trump tariff pressure, India looks to diversify textile exports to 40 nations

Amid tariff pressure from the United States, India is planning to launch a dedicated outreach initiativeto push textile exports in 40 countries, including the UK, Japan, and South Korea. The Donald Trump administration has imposed a 50 per cent tariff on Indian exports to the United States, includingon the textile sector.

India is planning to extend textile exports to several developed and developing nations, including Germany, France, Italy, Spain, the Netherlands, Poland, Canada, Mexico, Russia, Belgium, Turkiye, the United Arab Emirates, and Australia, PTI reported, citing an official.

The official said that India aims to position itself as a reliable supplier of quality, sustainable, and innovative textile products. India exports to 220 countries. However, these 40 importing nations are key to India's diversification plan.

These countries import $590 billion in textiles and apparel. They offer a great opportunity for India to enhance its exports, as it only accounts for 5-6 per cent of total imports to these nations.

The government is targeting traditional as well as emerging markets with this outreach initiative.

"Recognising this, the government is planning dedicated outreach programmes in each of these 40 countries, with a focus on both traditional markets and emerging markets," the official added.

Donald Trump's steep 50 per cent tariff will impact at least USD 48 billion worth of Indian exports to the United States. The textile sector is expected to be one of the worst-hit sectors.

Gems and jewellery, shrimp, leather and footwear, animal products, chemicals, and electrical and mechanical machinery industries will also bear the brunt of Donald Trump's tariffs on India.

India's total exports of the textile and apparel sector are estimated at USD 37 billion. India's share in the global textiles and apparel market is a paltry 4.1 per cent. It is the sixth-largest exporter of apparel and textiles.