Lok Sabha Question No. 1401 (UNSTARRED), answered on 2025-12-09
Subject: Taxation Tariff Change on Textile Industries
Ministry: TEXTILES
Asked by: Dr. Thirumaavalavan Tholkappiyan, Shri Anto Antony

## TAXATION TARIFF CHANGE ON TEXTILE INDUSTRIES

## 1401. SHRI ANTO ANTONY: DR. THIRUMAAVALAVAN THOLKAPPIYAN:

Will the Minister of TEXTILES वस्त्र मंत्री be pleased to state :

(a) whether the Government has the details about the impact on the textile industry due to the taxation tariff change by the United States of America and if so, the details thereof and total estimated loss to the textile Industries due to these tariff;

(b) whether it was positive or negative for the Indian Textile Industry;

(c) whether the Government has details of loss or gain in terms of turnover amount and Employment due to the above tariff change;

(d) if so, the details thereof; and

(e) the steps taken by the Government to support affected textile exporters?

## उत्तर

## ANSWER

## वस्त्र राज्  य मंत्री ( श्री पबित्र मार्घेररटा )

## THE MINISTER OF STATE FOR TEXTILES (SHRI PABITRA MARGHERITA)

(a) to (e): The  Ministry  is  regularly  monitoring  India's  export  of  Textile  &  Apparel  including Handicrafts to United States and other countries in the world and  tracking of the impact of US tariffs on  all segments of the  textile  Sector.

India's Textiles & Apparel exports, including handicrafts, stood at US$ 20,401.95 million during April-October 2025, reflecting a marginal decrease of 1.8% compared to the same period in  the  previous  year  (US$  20,728.05  million),  yet  indicating  overall stability  in  export  performance despite  global  tariff-related  and  other  external challenges.  (Source-  Quick  Estimates,  Department  of Commerce).  During  April-October  2025,  India's  exports recorded  positive  growth  in  more  than  100 countries  compared  to  the  previous year-including  key  markets  such  as  the  UAE,  U.K.,  Germany, Spain, France, Italy, China, Saudi Arabia, Egypt and Japan-reflecting the resilience and diversification efforts of the Indian textile industry.(Source- DGCIS).

The  combination  of  different  factors  such  as  product  differentiation,  demand,  quality,  contractual arrangements etc. would determine the impact of reciprocal tariffs on India's exports of textiles sector in global market. The Ministry is in regular consultation with exporters including MSMEs to assess the impact  of  US  tariff  on  India's  textiles  &  apparel  export  and  other  challenges.  The  Ministry    has convened two wide-ranging  consultative  meetings  with  large  as  well  as  Micro,  Small  and  Medium (MSME) textile exporters from across the textile and apparel value chain at various levels.

The  Government  is  implementing  various  schemes/initiatives  to  boost  the  Indian  textile  and  apparel sector and enhance its competitiveness from Country:-

(1)  The  major  schemes/initiatives  include  PM  Mega  Integrated  Textile  Regions  and  Apparel  (PM MITRA)  Parks  Scheme  to  create  a  modern,  integrated,  world  class  textile  infrastructure;  Production Linked Incentive (PLI) Scheme focusing on MMF Fabric, MMF Apparel and Technical Textiles to boost large scale manufacturing and enhancing competitiveness; National Technical Textiles Mission focusing on Research Innovation & Development, Promotion and Market Development; SAMARTH - Scheme for Capacity Building in Textile Sector with the objective providing demand driven, placement oriented, skilling program; Silk Samagra-2 for comprehensive development of sericulture value chain; National Handloom Development Program for end to end support for handloom sector. Ministry of Textiles is also  implementing  National  Handicrafts  Development  Programme  and  Comprehensive  Handicrafts Cluster Development Scheme for promotion of handicrafts

- (2)   Export  Obligation  (EO)  period  under  the  Advance  Authorisation  Scheme for inputs  falling  under mandatory Quality Control Order (QCO) in the textile sector has been extended from six (6) months to eighteen (18) months.
- (3)  The  Government  has  brought  key  revisions  to  the  Production  Linked  Incentive  (PLI)  Scheme  for MMF  Apparel,  MMF  Fabrics,  and  products  of  Technical  Textiles  to  address  industry  challenges, enhance ease of doing business, encourage fresh investments in the sector etc. The Revisions include Expansion  of  Eligible  Products,  relaxation  from  setting  up  new  companies,  reduction  in  minimum threshold of investment and incremental turnover Criteria. The revision aims to reduce entry barriers and financial thresholds, enabling faster execution.
- (4) The Government has exempted import duty on cotton under HS 5,201 upto 31.12.2025 for reducing the  input  material  costs  for  the  textile  industry,  ensuring  adequate  supply  and  improving  export competitiveness and enhancing overall industry efficiency.
- (5)  The  Government has rationalized the GST rate across the textile value  chain to remove structural anomalies, reduce costs, boost demand, support exports and sustain jobs.
- (6)  The  Government  is  also  administering  the  two  remission  schemes  of  Rebate  of  State  and  Central Taxes  and  Levies  (RoSCTL)  for  Apparel/Garments  and  Made-ups  and  the Remissions  of  Duties  and Taxes on Exported Products (RoDTEP) Scheme for other textiles products
- (7)  India  has  signed  15  Free  Trade  Agreements  (FTAs),  including  the India-UK  Comprehensive Economic and Trade Agreement (CETA) which was signed on 24 July, 2025. These FTAs aim to reduce tariff and non-tariff barriers, simplify procedures, and address structural issues to make Indian Exporters more competitive in partner markets.
- (8)  Further,  the  Ministry  has  formulated  a  comprehensive  40-country  market  diversification  strategy, identifying  high-potential  global  destinations  for  Indian  textile  exports.  A  structured  and  targeted outreach  in  these  markets-supported  by  coordinated  efforts  of  Export  Promotion  Councils  (EPCs), industry delegations, and Indian Missions abroad-aims to reduce market concentration risks, enhance India's export share, and establish a more resilient and sustainable global footprint for the Indian textile industry.
- (9) The Government has approved Credit Guarantee Scheme for Exporters (CGSE) for providing 100% credit guarantee coverage by National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending  Institutions  (MLIs)  for  extending  additional  credit  facilities  upto  Rs.20,000  crore  to  eligible exporters,  including  MSMEs.  The  Scheme  aims  to  enhance  the  global  competitiveness  of  Indian exporters and support diversification into new and emerging markets.
- (10)  The  Government  has  approved  the  Export  Promotion  Mission  (EPM)  which  is  anchored  in  a collaborative  framework  involving  the  Department  of  Commerce,  Ministry  of  MSME,  Ministry  of Finance,  and  other  key  stakeholders  including  Financial  Institutions,  Export  Promotion  Councils, Commodity Boards, industry associations, and state governments.