**Executive Summary**
The document responds to questions regarding the impact of US tariff changes on the Indian textile industry. It outlines the Ministry of Textiles' ongoing efforts to monitor the situation, support exporters, and enhance the sector's competitiveness through various schemes and initiatives. The response covers the period up to April-October 2025 and mentions the signing of the India-UK Comprehensive Economic and Trade Agreement (CETA) on July 24, 2025.
**Key Points / Main Content**
* **Monitoring and Assessment:**
* The Ministry is monitoring the impact of US tariffs on India's textile exports, which include handicrafts.
* From April-October 2025, textile & apparel exports stood at US$ 20,401.95 million, a marginal decrease of 1.8% compared to the previous year.
* **Government Initiatives and Schemes:**
* Various schemes/initiatives are being implemented to boost the Indian textile and apparel sector and enhance its competitiveness.
* The PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks Scheme aims to create modern textile infrastructure.
* The Production Linked Incentive (PLI) Scheme focuses on MMF Fabric, MMF Apparel, and Technical Textiles.
* The National Technical Textiles Mission focuses on Research, Innovation & Development, Promotion and Market Development.
* SAMARTH is a scheme for capacity building in the textile sector.
* Silk Samagra-2 promotes the comprehensive development of the sericulture value chain.
* The National Handloom Development Program supports the handloom sector.
* The Ministry of Textiles is also implementing National Handicrafts Development Programme and Comprehensive Handicrafts Cluster Development Scheme.
* Key revisions to the Production Linked Incentive (PLI) Scheme for MMF Apparel, MMF Fabrics, and products of Technical Textiles aim to address industry challenges, enhance ease of doing business, and encourage fresh investments.
* **Trade and Export Support:**
* The Export Obligation (EO) period under the Advance Authorisation Scheme for inputs falling under mandatory Quality Control Order (QCO) in the textile sector has been extended from six to eighteen months.
* Import duty on cotton under HS 5,201 is exempted until 31.12.2025.
* GST rates across the textile value chain have been rationalized.
* The government administers the Rebate of State and Central Taxes and Levies (RoSCTL) and the Remissions of Duties and Taxes on Exported Products (RoDTEP) Scheme.
* India has signed 15 Free Trade Agreements (FTAs), including the India-UK Comprehensive Economic and Trade Agreement (CETA) which was signed on 24 July, 2025.
* A 40-country market diversification strategy has been formulated.
* The Credit Guarantee Scheme for Exporters (CGSE) has been approved.
* The Export Promotion Mission (EPM) has been approved.
**Impact Analysis**
**Textile Exporters (including MSMEs)**
* **Impact:** Affected by US tariffs, global demand fluctuations, and changes in government policies.
* **Action Required:** Engage in consultations with the Ministry, leverage available schemes and incentives, adapt to market diversification strategies, and comply with quality control orders.
**Textile Industry as a Whole**
* **Impact:** Impacted by tariff changes, input costs, GST rates, trade agreements, and government support initiatives.
* **Action Required:** Adapt to changes in the global market, improve competitiveness, utilize schemes for infrastructure development and capacity building, and enhance export performance.
**Government**
* **Impact:** Responsible for monitoring the textile industry, providing support to exporters, and implementing policies to enhance the sector's competitiveness.
* **Action Required:** Continue monitoring the impact of US tariffs, consult with stakeholders, refine existing schemes and initiatives, and negotiate trade agreements to improve market access for Indian textile products.
Key Entities Referenced
Ministry of Textiles: The primary ministry responsible for monitoring and addressing the impact of US tariffs on the Indian textile industry and implementing various schemes.
Production Linked Incentive (PLI) Scheme: A scheme focused on boosting large-scale manufacturing and competitiveness in MMF Fabric, MMF Apparel, and Technical Textiles.
PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks Scheme: A scheme to create modern, integrated, world-class textile infrastructure.
India-UK Comprehensive Economic and Trade Agreement (CETA): One of the Free Trade Agreements (FTAs) aimed at reducing trade barriers and making Indian exporters more competitive.
United States of America: The country whose taxation tariff changes are the subject of the parliamentary question and have potential impact on the Indian textile industry.
LOK SABHA
UNSTARRED QUESTION NO. 1401
TO BE ANSWERED ON 09.12.2025
TAXATION TARIFF CHANGE ON TEXTILE INDUSTRIES
1401. SHRI ANTO ANTONY:
DR. THIRUMAAVALAVAN THOLKAPPIYAN:
Will the Minister of TEXTILES वस्त्र मंत्री
be pleased to state :
(a) whether the Government has the details about the impact on the textile industry due to the taxation
tariff change by the United States of America and if so, the details thereof and total estimated loss to the
textile Industries due to these tariff;
(b) whether it was positive or negative for the Indian Textile Industry;
(c) whether the Government has details of loss or gain in terms of turnover amount and Employment due
to the above tariff change;
(d) if so, the details thereof; and
(e) the steps taken by the Government to support affected textile exporters?
उत्तर
ANSWER
वस्त्र राज् य मंत्री (श्री पबित्र मार्घरे रटा)
THE MINISTER OF STATE FOR TEXTILES
(SHRI PABITRA MARGHERITA)
(a) to (e): The Ministry is regularly monitoring India’s export of Textile & Apparel including
Handicrafts to United States and other countries in the world and tracking of the impact of US tariffs
on all segments of the textile Sector.
India’s Textiles & Apparel exports, including handicrafts, stood at US$ 20,401.95
million during April–October 2025, reflecting a marginal decrease of 1.8% compared to the same period
in the previous year (US$ 20,728.05 million), yet indicating overall stability in export performance
despite global tariff-related and other external challenges. (Source- Quick Estimates, Department of
Commerce). During April–October 2025, India’s exports recorded positive growth in more than 100
countries compared to the previous year—including key markets such as the UAE, U.K., Germany,
Spain, France, Italy, China, Saudi Arabia, Egypt and Japan—reflecting the resilience and diversification
efforts of the Indian textile industry.(Source- DGCIS).
The combination of different factors such as product differentiation, demand, quality, contractual
arrangements etc. would determine the impact of reciprocal tariffs on India’s exports of textiles sector
in global market. The Ministry is in regular consultation with exporters including MSMEs to assess the
impact of US tariff on India’s textiles & apparel export and other challenges. The Ministry has
convened two wide-ranging consultative meetings with large as well as Micro, Small and Medium
(MSME) textile exporters from across the textile and apparel value chain at various levels.
The Government is implementing various schemes/initiatives to boost the Indian textile and apparel
sector and enhance its competitiveness from Country:-(1) The major schemes/initiatives include PM Mega Integrated Textile Regions and Apparel (PM
MITRA) Parks Scheme to create a modern, integrated, world class textile infrastructure; Production
Linked Incentive (PLI) Scheme focusing on MMF Fabric, MMF Apparel and Technical Textiles to boost
large scale manufacturing and enhancing competitiveness; National Technical Textiles Mission focusing
on Research Innovation & Development, Promotion and Market Development; SAMARTH – Scheme
for Capacity Building in Textile Sector with the objective providing demand driven, placement oriented,
skilling program; Silk Samagra-2 for comprehensive development of sericulture value chain; National
Handloom Development Program for end to end support for handloom sector. Ministry of Textiles is
also implementing National Handicrafts Development Programme and Comprehensive Handicrafts
Cluster Development Scheme for promotion of handicrafts
(2) Export Obligation (EO) period under the Advance Authorisation Scheme for inputs falling under
mandatory Quality Control Order (QCO) in the textile sector has been extended from six (6) months to
eighteen (18) months.
(3) The Government has brought key revisions to the Production Linked Incentive (PLI) Scheme for
MMF Apparel, MMF Fabrics, and products of Technical Textiles to address industry challenges,
enhance ease of doing business, encourage fresh investments in the sector etc. The Revisions include
Expansion of Eligible Products, relaxation from setting up new companies, reduction in minimum
threshold of investment and incremental turnover Criteria. The revision aims to reduce entry barriers and
financial thresholds, enabling faster execution.
(4) The Government has exempted import duty on cotton under HS 5,201 upto 31.12.2025 for reducing
the input material costs for the textile industry, ensuring adequate supply and improving export
competitiveness and enhancing overall industry efficiency.
(5) The Government has rationalized the GST rate across the textile value chain to remove structural
anomalies, reduce costs, boost demand, support exports and sustain jobs.
(6) The Government is also administering the two remission schemes of Rebate of State and Central
Taxes and Levies (RoSCTL) for Apparel/Garments and Made-ups and the Remissions of Duties and
Taxes on Exported Products (RoDTEP) Scheme for other textiles products
(7) India has signed 15 Free Trade Agreements (FTAs), including the India-UK Comprehensive
Economic and Trade Agreement (CETA) which was signed on 24 July, 2025. These FTAs aim to reduce
tariff and non-tariff barriers, simplify procedures, and address structural issues to make Indian Exporters
more competitive in partner markets.
(8) Further, the Ministry has formulated a comprehensive 40-country market diversification strategy,
identifying high-potential global destinations for Indian textile exports. A structured and targeted
outreach in these markets—supported by coordinated efforts of Export Promotion Councils (EPCs),
industry delegations, and Indian Missions abroad—aims to reduce market concentration risks, enhance
India’s export share, and establish a more resilient and sustainable global footprint for the Indian textile
industry.
(9) The Government has approved Credit Guarantee Scheme for Exporters (CGSE) for providing 100%
credit guarantee coverage by National Credit Guarantee Trustee Company Limited (NCGTC) to Member
Lending Institutions (MLIs) for extending additional credit facilities upto Rs.20,000 crore to eligible
exporters, including MSMEs. The Scheme aims to enhance the global competitiveness of Indian
exporters and support diversification into new and emerging markets.
(10) The Government has approved the Export Promotion Mission (EPM) which is anchored in a
collaborative framework involving the Department of Commerce, Ministry of MSME, Ministry of
Finance, and other key stakeholders including Financial Institutions, Export Promotion Councils,
Commodity Boards, industry associations, and state governments.
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