New Delhi [India], December 30 : The Confederation of Indian Textile Industry (CITI) has called on the government to introduce focused initiatives and policies to drive investment and scale in the Textile and Apparel (T&A) sector.
This comes as India sets its sights on an ambitious export target of USD 100 billion by 2030. With key markets such as the USA and the EU poised to play critical roles, CITI emphasized the importance of robust export promotion measures to achieve this vision.
CITI Chairman Rakesh Mehra highlighted the significance of the US market, and said, "USA accounts for about 27 per cent of India's T&A exports. During the last 5 years, India's exports to USA have increased at a CAGR of about 3.3 per cent. It would require our exports to grow at a CAGR of about 16 per cent to achieve the visionary target of USD 100 bn exports by 2030."
Mehra also pointed out the emerging opportunities stemming from anticipated policy changes in the USA under newly elected President Donald Trump.
"The newly elected President of the USA, Trump, is likely to announce additional tariffs on Chinese products as one of his initial measures upon taking office. Since China is a major supplier of T&A products to the USA, this tariff shift presents a unique opportunity for India to expand its share in the US market," he explained.
To capitalize on this opportunity, CITI underscored the need for strategic marketing efforts to enhance India's presence in the US market. These include hosting trade exhibitions, organizing buyer-seller meetings, and building partnerships with US retailer associations.
"Enhancing our visibility and presence in the US market through these targeted efforts will be crucial for tapping into this potential," Mehra added.
CITI also stressed the importance of policy support to sustain the cost competitiveness of Indian T&A products. The organization urged the government to extend key schemes like the Interest Equalization Scheme (IES) and the Remission of Duties and Taxes on Exported Products (RoDTEP) for AA/SEZ and EoU units, which are set to expire on December 31, 2024.
Additionally, CITI advocated for income tax relief for MSME manufacturing units within the textile sector to ensure sustainable growth.
"These policy interventions, combined with focused initiatives aimed at key export markets like the USA, will strengthen India's overall export strategy and enhance the global competitiveness of the Indian textile industry," Mehra concluded.
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