India rebuts USTR allegations as textile exports hit record growth
The Indian textile industry has formally challenged the United States Trade Representative's (USTR) assertions regarding forced labor and excess capacity, positioning these claims as a misunderstanding of India’s decentralized manufacturing model. The Cotton Textiles Export Promotion Council (TEXPROCIL) points out, the country’s vertically integrated supply chain ranging from raw fiber to finished apparel is built on competitive efficiency rather than state-subsidized surplus. This defense comes at a critical juncture as India’s textile exports reached a significant valuation of approximately $35 billion in the previous fiscal, with cotton yarn and fabric accounting for a substantial portion of this growth.
Market data suggests, the growth in Indian exports is driven by the China Plus One’ sourcing strategy, which has seen US retailers increase orders for sustainable fibers and organic cotton. Industry experts emphasize, the sector is currently navigating a transition toward high-value technical textiles and recycled yarns, which are projected to grow at a 15 per cent CAGR through 2027.
Arunkumar Garodia, Chairman, Engineering Export Promotion Council, notes, trade barriers like Section 301 investigations often overlook the rigorous compliance standards adopted by modern Indian spinning mills. While the sector faces challenges from fluctuating raw material costs, the opportunity to capture a larger share of the global apparel market remains strong, provided trade relations with the US remain stable and collaborative.
The primary promotional body for Indian cotton textiles, Texprocil represents thousands of exporters in global markets. The council oversees the promotion of cotton yarn, fabrics, and home textiles, with a strategic focus on expanding footprints in the European Union and North America. After six decades of operation, the organization now aims to double export turnover by 2030, supported by strong fiscal performance in the value-added garment segment.