New Delhi [India], January 28 : The Indian textile and apparel industry has approached the government with a comprehensive set of policy recommendations to counter the severe economic headwinds caused by steep US tariffs, post the second round of a survey conducted by the Confederation of Indian Textile Industry (CITI) in December 2025.
Although the Free Trade Agreement with the European Union has brought much-needed relief to exporters, the demand emerging from the CITI survey is for the government to fast-track the implementation of the India-UK Comprehensive Economic Partnership Agreement (CETA).
To further enhance market reach, the CITI survey highlights an industry request for a dedicated handholding scheme, similar to the Focus Market Incentive Scheme, which would provide duty support to exporters to offset the duty disadvantages they face in new international markets.
The survey also outlines critical financial interventions requested by industry stakeholders to sustain operations during this transition.
The industry is seeking an extension of current relief measures, including the moratorium on installments, recalculation of drawing power, and credit support, until at least March 31, 2026, with the benefits covering the entire textile value chain, including Tier 2 and Tier 3 exporters. Furthermore, the CITI survey notes a call to increase the interest subvention rate from the current 2.75 per cent to 5 per cent under the recently announced Interest Subvention Scheme.
To address liquidity concerns, the industry has also requested a 30 per cent extension of collateral-free loans under the Emergency Credit Line Guarantee Scheme (ECLGS), similar to the support provided during the pandemic for both MSMEs and larger corporations.
The CITI survey identifies high logistics costs, limited market knowledge, and payment-related risks as the primary barriers currently slowing this transition. By addressing these constraints through the proposed policy measures, the industry aims to move beyond the current period of uncertainty and stabilise its export performance heading into 2026.
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