CHANDIGARH: The imposition of a 25% tariff, along with an unspecified penalty by the United States, is likely to severely impact India’s exports of textiles to the US market. However, it will help Pakistan, Bangladesh, Turkey, Vietnam, Egypt, and Italy, allowing them to increase their market share.
In Panipat, which is known as the ‘Textile City’ of India, with an export volume of around Rs 20,000 crore per year, the exporters are struggling. They have faced a dip in exports over the past three years, primarily due to the
Russia-Ukraine war, inflation across European and South American markets, and rising freight charges. They are now adopting a wait-and-watch policy before taking new orders.
Vinod Kumar, Chairman of the Haryana Chamber of Commerce Industry (Panipat Chapter), said that the US’s decision has hit the textile industry of Panipat hard.
“As per annum, we export textiles worth Rs 20,000 crore, and of these 60% that is Rs 12,000 crore, are exported to the US, from home textile items to floor covering items such as carpets and rugs,” he added.
“At present, the tariff on textile goods is 10%, but will increase as announced by the Trump administration, benefitting Pakistan, Bangladesh, Turkey, Vietnam and Italy, as these countries were our competitors,” he said.
Kumar further said that there are around 500 exporters in Panipat who employ approximately 2 lakh workforce. “The move may lead to retrenchment of the workforce, which will be very unfortunate,” he added.
Lalit Goyal, Chairman, Handloom Export Promotion Council and president of Panipat Exporters’ Association, said that the total textile export to the US amounts to Rs 96,000 cr, with the remaining Rs 80,000 cr comprising garments and make-up.