Trade agreements essential to protect US market access amid tariff risks: CITI

The Confederation of Indian Textile Industry (CITI) has urged the Union government to initiate immediate bilateral discussions with the US to shield India’s fiber and yarn exporters from punitive trade measures. Stakeholders point out, micro, small, and medium enterprises face severe operational pressure as looming tariff adjustments threaten profit margins across major spinning and garment manufacturing hubs.  Recent data indicates, the US accounts for nearly 30 per cent of India's total ready-made garment exports, making alternative markets insufficient in the short term.

Absorbing additional tariff duties is not unfeasible for Indian exports, which relies on consistent volume to sustain employment, explains Rakesh Mehra, Chairman, Synthetic and Rayon Textile Export Promotion Council. Analysts emphasize, while ongoing free trade agreement negotiations offer long-term diversification opportunities, safeguarding established supply chains in Western markets requires immediate diplomatic intervention and targeted fiscal support for vulnerable textile units.