The government has said it is holding regular consultations with exporters, including micro, small and medium enterprises (MSMEs), across states to assess the impact of US tariffs on India’s textiles and apparel exports and to address other sectoral challenges.
In a written reply to a question in the Rajya Sabha, Minister of State for Textiles Pabitra Margherita said the Centre is pursuing a comprehensive, multi-pronged strategy to mitigate the impact of the US tariff measures on Indian exports.
The strategy includes intensive engagement with the US government towards a mutually beneficial India-US Bilateral Trade Agreement, immediate relief through Reserve Bank of India trade facilitation measures, the Credit Guarantee Scheme for Exporters, and steps to boost domestic demand through next-generation GST reforms. Export promotion initiatives such as the new Export Promotion Mission and the pursuit of free trade agreements with new markets, along with improved utilisation of existing FTAs, also form part of the plan.
Additional measures outlined by the minister include extension of the export obligation period under the Advance Authorisation Scheme, revision of the Production-Linked Incentive (PLI) scheme for man-made fibre (MMF) apparel, MMF fabrics and technical textiles to ease entry and investment norms, and exemption of import duty on cotton until December 31, 2025 to improve raw material availability.
The government is also implementing two remission schemes — the Rebate of State and Central Taxes and Levies (RoSCTL) for apparel, garments and made-ups, and the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for other textile products.
Margherita added that the ministry remains in constant dialogue with exporters, export promotion councils and other stakeholders, including MSMEs, to closely monitor the impact of US tariffs and evolving global trade conditions.
Despite external headwinds, India’s textiles and apparel exports, excluding handicrafts, stood at $32.56 billion during January to November 2025, registering a marginal growth of 0.26 per cent over the corresponding period of the previous year.