A parliamentary panel has called for stronger policy and financial support for India’s textile and apparel industry amid tariff uncertainty and weakening demand in the US market, while urging exporters to diversify into technical textiles, man-made fibres (MMF), sustainable textiles, home furnishings and high-value apparel.
The Department Related Parliamentary Standing Committee on Commerce, headed by Rajya Sabha MP Dola Sen, presented its 200th Report on ‘Evaluation of India–US Trade Relations’ to both Houses of Parliament. The report examined the impact of US tariff measures on Indian exporters and outlined measures to protect vulnerable sectors and strengthen India’s global export competitiveness.
The committee recommended faster implementation of PM MITRA Parks, the Production Linked Incentive (PLI) Scheme and the Samarth Scheme to modernise the textile industry, improve productivity and promote higher-value manufacturing.
It specifically called for the Ministry of Textiles to establish specialised MMF manufacturing clusters within new PM MITRA Parks, enabling MSMEs to access synthetic raw materials locally and align production more closely with global market demand.
The panel also sought stronger support under key export promotion schemes, including RoDTEP, RoSCTL and the Interest Equalisation Scheme, along with other measures aimed at improving exporters’ competitiveness.
Financial support for textile MSMEs
The committee stressed the need to enhance liquidity support for textile MSMEs through concessional working capital, export credit, credit guarantee coverage and faster disbursement of financial assistance.
Banks and financial institutions, it said, should ensure timely sanction of export credit to viable exporters experiencing temporary financial stress because of tariff-related disruptions.
In a significant recommendation, the panel proposed exploring an emergency relief programme under RoSCTL to compensate MSME textile exporters for price reductions demanded by US buyers. Such support could provide a financial cushion to businesses facing the risk of closures and job losses.
Warehousing and faster customs clearance
To address delivery-time disadvantages faced by Indian exporters, the committee recommended establishing government-subsidised textile warehousing hubs at major US shipping entry points in partnership with industry bodies.
It also proposed the creation of green-channel, fast customs corridors at Indian ports. According to the committee, maintaining inventories closer to US customers, combined with faster customs clearance in India, could reduce delivery lead times, lower dependence on intermediaries and help Indian exporters compete with faster global suppliers.
Focus on carpets and handlooms
The panel also highlighted the vulnerability of India’s carpet and handloom industries to higher tariffs and weaker US demand. It warned that reduced exports could adversely affect artisan incomes and employment while allowing competing countries to expand their market share.
For carpet exporters, the committee recommended greater marketing assistance through international trade fairs, branding initiatives, Geographical Indication (GI) promotion, buyer-seller meets and design development.
For handloom exporters and traditional weaving communities, it called for enhanced support for international exhibitions, branding, GI promotion, digital marketing, product diversification, design innovation and entry into new export markets.
Technology upgrade and market-linked incentives
The committee identified stagnation in traditional, labour-intensive sectors such as textiles and clothing as an area requiring urgent policy intervention.
It recommended technology-upgradation grants and a specialised market-linked incentive scheme to help textile exporters diversify product designs and respond more effectively to changing US consumer preferences.
The recommendations come as India’s textile industry faces a changing global trade environment, making product diversification, faster logistics, financial resilience and greater integration with international markets increasingly important for sustaining export growth and employment.
