Parliament Question: Impact of India-US Trade Agreement

LOK SABHA STARRED QUESTION NO. *452 TO BE ANSWERED ON 24.03.2026 IMPACT OF INDIA-US TRADE AGREEMENT *452. THIRU DAYANIDHI MARAN: Will the Minister of TEXTILES वस्त्र मंत्री be pleased to state : (a) whether the Government has conducted a sector-wise assessment of the recently announced lndia-U.S. trade arrangement and its implications for India's textile & apparel exports, particularly from major clusters in Tamil Nadu; (b) whether the 18 per cent tariff applicable to certain Indian textile and apparel exports to the United States will still leave Indian products less competitive compared to exporters from other countries, and the Government's response thereto; (c) the details of consultations held with textile exporters' associations, MSMEs and worker representatives before finalising the arrangement, and the concerns raised by stakeholders from Tamil Nadu; (d) the steps proposed by the Government to protect employment in labour-intensive textile clusters if export competitiveness weakens due to continuing tariffs or market access limitations; and (e) whether the Government has any proposal for support measures, incentives or market diversification programmes to safeguard the livelihood of textile workers and exporters affected by the new trade terms? उत्तर ANSWER वस्त्र मंत्री (श्री गिरििाज ग िंह) MINISTER OF TEXTILES (SHRI GIRIRAJ SINGH) (a) to (e):- A statement is laid on the Table of the House.STATEMENT REFERRED TO IN REPLY TO THE LOK SABHA STARRED QUESTION NO.*452 FOR 24.03.2026 REGARDING IMPACT OF INDIA-US TRADE AGREEMENT ASKED BY SHRI THIRU DAYANIDHI MARAN (a) to (c): The Government continues to remain engaged with all stakeholders of Country including exporters, Export Promotion Councils and industry of Tamil Nadu to mitigate any effect due to emerging geopolitical situation. India and the United States (U.S.) announced trade deal on February 02, 2026. A Joint Statement for the same was released on February 07, 2026. On February 07, 2026, 25% additional ad valorem tariffs imposed by the U.S. on certain India’s exports citing India’s imports of Russian oil were removed. Pursuant to the U.S. Supreme Court judgement dated February 20, 2026 invalidating reciprocal tariffs, the reciprocal tariffs are no longer in force. The U.S. Government has issued Executive Orders imposing 10% tariffs on certain products from all countries. The Government is studying all the developments and remains engaged with the U.S. Government. India’s exports of Textiles & Apparel, including handicrafts, to global markets have grown by 3.3% in INR terms during April 2025 to January 2026 as compared to the corresponding period of the previous financial year. Tamil Nadu has also exhibited a similar rate of growth during the same period. (d) & (e): The Government is implementing various schemes and initiatives to boost the Indian textile and apparel sector and enhance its competitiveness, and these measures are contributing to the growth of exports from the country, including Tamil Nadu. The major schemes/initiatives include PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks Scheme; Production Linked Incentive (PLI) Scheme; National Technical Textiles Mission; SAMARTH – Scheme for Capacity Building in Textile Sector; Silk Samagra-2; National Handloom Development Programme; National Handicrafts Development Programme; Comprehensive Handicrafts Cluster Development Scheme; Rebate of State and Central Taxes and Levies (RoSCTL) Scheme; Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme; Export Promotion Mission (EPM), comprising Niryat Protsahan and Niryat Disha; and Credit Guarantee Scheme for Exporters (CGSE). India has also signed 16 FTAs and also concluded the FTA negotiations with E.U and New Zealand. ****