Dear Friends,

As the 90-day trade truce extended by the US nears its conclusion, concerns are mounting across global trade corridors. Should reciprocal tariffs of up to 26 per cent be imposed post-deadline, the repercussions could be profound, particularly for India’s textile and apparel exports to the USA.

The textile and clothing sector, one of India’s most labour-intensive industries and a cornerstone of the country’s export economy, faces a renewed wave of uncertainty. While the US-China trade conflict has witnessed pauses and recalibrations since its inception, the impact on the global textile supply chain—especially through tariff escalations—is now clearly visible.

Brands, retailers, and manufacturers are already grappling with persistent market unpredictability, order front-loading and production re-routing to alternative destinations, increased inventories and warehousing costs, and margin compression and fiscal stress.

With the US accounting for almost 30 per cent share of India’s T&C exports to the world, all eyes are now on the prospects of a bilateral India-US trade agreement. A favourable deal could serve as a strategic inflection point, unlocking new export opportunities for Indian textiles and enabling a stronger foothold in the US market amid shifting global sourcing patterns.

Meeting with HCIM

Given the current global trade developments, India—with the right policy support and a responsive trade framework—has a unique opportunity to capitalise on the shifting supply chains and expand its textile and apparel exports significantly in the coming quarters.

In this context, a delegation comprising Shri Sudhir Sekhri, Chairman AEPC, Shri Naren Goenka, Chairman Bharat Tex, and myself met the Hon’ble Minister of Commerce and Industry, Shri Piyush Goyal, in New Delhi on 27th June 2025.

During the meeting, we apprised the Hon’ble Minister of the key concerns surrounding the proposed India–US Bilateral Trade Agreement, particularly with regard to its potential implications for the labour-intensive textile and apparel sector.

The Hon’ble Minister gave the delegation a patient and encouraging hearing, and reaffirmed the Government’s commitment to safeguarding the interests of employment-generating sectors during the ongoing trade negotiations. He assured that all necessary steps would be taken to protect vulnerable segments, such as textiles and apparel, while striving for a balanced and beneficial trade agreement with the United States.

This interaction reflects the Government’s proactive engagement with stakeholders and its steadfast commitment to promoting the sustained growth, global competitiveness, and strategic relevance of India’s textile and apparel industry in a rapidly evolving global trade environment.

Mini Mission – II

To address the yield challenges in India’s cotton industry, a series of measures are being set up in the second largest producer of fabric, to adopt advanced farming practices and technology. The Centre has begun the groundwork for launching a National Cotton Productivity Mission, for which discussions are underway to chart out a strategy focused on crop diversification, yield improvement, introduction of new seed varieties, and promoting mechanized farming.

The Council is partnering with CCI in the consultations for Mini Mission – II based on the “Cotton Quality Augmentation” being implemented by the Ministry of Textiles. Mini Mission – II comprises various components, of which one major component is Kasturi Cotton Bales Production – under the purview of the ‘Kasturi Cotton Bharat’ programme implemented by the Council.

India’s cotton industry is currently facing key challenges impacting its competitiveness, including the need to remove import duties on cotton, improve productivity, and ensure timely liquidity for farmers through Direct Benefit Transfer (DBT). The Council has repeatedly raised these concerns, stressing the importance of coordinated action in technology adoption, policy reforms, sustainability, and farmer support to secure the long-term health of the sector.

Kasturi Promotion @ CMAI

The Kasturi Cotton India initiative was prominently featured at the Clothing Manufacturers’ Association of India (CMAI) office on 3rd July 2025, where the team shared the brand’s vision and recent achievements as India’s premium cotton offering.

At the meeting, I was accompanied by Shri Sunil Patwari, Past Chairman and the Council’s Executive Director; along with the Kasturi Cotton team. We highlighted ongoing collaboration with industry stakeholders to establish Kasturi Cotton as a trusted, ethical, and high-value brand in both domestic and international markets.

We emphasised that our apparel brands can benefit from reliable quality, enhanced fabric strength and vibrancy, and compliance with global supply chain regulations—helping them build consumer trust and premium positioning in both domestic and export markets.

The presentation on Kasturi Cotton sparked significant interest among CMAI members and led to engaging discussions on partnerships, sourcing, and brand integration.

Way forward

Friends, political stability and a conducive business environment have been pivotal in strengthening India’s position in the global textile value chain. These foundational factors have enabled sustained growth, attracted investment, and enhanced international confidence in India as a reliable sourcing destination.

While challenges persist, India has an opportunity to move forward strategically – balancing export momentum with secure access to raw material imports, while remaining agile to evolving patterns of global demand.

With coordinated policy support, industry resilience, and a focus on innovation and sustainability, India can continue to consolidate its leadership in the textile and apparel sector globally.

:: TEXPROCIL ::