Lok Sabha Question No. 452 (STARRED), answered on 2026-03-24
Subject: Impact of India-US Trade Agreement
Ministry: TEXTILES
Asked by: Thiru Dayanidhi Maran

## IMPACT OF INDIA-US TRADE AGREEMENT

## *452. THIRU DAYANIDHI MARAN:

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

(a) whether the Government has conducted a sector-wise assessment of the recently announced lndia-U.S. trade  arrangement  and  its  implications  for  India's  textile  &  apparel  exports,  particularly  from  major clusters in Tamil Nadu;

- (b)  whether the 18 per cent tariff  applicable to certain  Indian textile and apparel exports to the United States will still leave Indian products less competitive compared to exporters from other countries, and the Government's response thereto;
- (c) the details of consultations held with textile exporters' associations,  MSMEs  and  worker representatives  before  finalising  the  arrangement,  and  the  concerns  raised  by  stakeholders  from  Tamil Nadu;
- (d)  the  steps  proposed  by  the  Government  to  protect  employment  in  labour-intensive  textile  clusters  if export competitiveness weakens due to continuing tariffs or market access limitations; and
- (e) whether the Government has any proposal for support measures, incentives or market diversification programmes to safeguard the livelihood of textile workers and exporters affected by the new trade terms?

उत्तर ANSWER वस्त्र मंत्री ( श्री गिरििाज ग िंह ) MINISTER OF TEXTILES (SHRI GIRIRAJ SINGH)

(a) to (e):A statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  THE  LOK  SABHA  STARRED  QUESTION NO.*452 FOR 24.03.2026 REGARDING IMPACT OF INDIA-US TRADE AGREEMENT ASKED BY SHRI THIRU DAYANIDHI MARAN

(a) to (c): The Government continues to  remain engaged with  all stakeholders  of Country including exporters,  Export  Promotion  Councils   and  industry  of  Tamil  Nadu   to  mitigate  any  effect  due  to emerging geopolitical situation. India and the United States (U.S.) announced trade deal on February 02, 2026. A Joint Statement for the same was released on February 07, 2026. On February 07, 2026, 25% additional  ad  valorem  tariffs  imposed  by  the  U.S.  on  certain  India's  exports  citing  India's  imports  of Russian  oil  were  removed.  Pursuant  to  the  U.S.  Supreme  Court  judgement  dated  February  20,   2026 invalidating  reciprocal  tariffs,  the  reciprocal  tariffs  are  no  longer  in  force.  The  U.S.  Government  has issued Executive Orders imposing 10% tariffs on certain products from all countries. The Government is studying all the developments and remains engaged with the U.S. Government.

India's  exports  of  Textiles  &  Apparel,  including  handicrafts,  to  global  markets  have  grown  by 3.3% in INR terms during April 2025 to January 2026 as compared to the corresponding period of the previous financial year. Tamil Nadu has also exhibited a similar rate of growth during the same period.

(d) & (e): The  Government  is  implementing  various  schemes  and  initiatives  to  boost  the  Indian textile  and  apparel  sector  and  enhance  its  competitiveness,  and  these  measures  are  contributing  to  the growth of exports from the country, including Tamil Nadu. The major schemes/initiatives include PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks Scheme; Production Linked Incentive (PLI)  Scheme;  National  Technical  Textiles  Mission;  SAMARTH  -  Scheme  for  Capacity  Building  in Textile  Sector;  Silk  Samagra-2;  National  Handloom  Development  Programme;  National  Handicrafts Development  Programme;  Comprehensive  Handicrafts  Cluster  Development  Scheme;  Rebate  of  State and Central Taxes and Levies (RoSCTL) Scheme; Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme; Export Promotion Mission (EPM), comprising Niryat Protsahan and Niryat Disha; and  Credit  Guarantee  Scheme  for  Exporters  (CGSE).   India  has  also  signed  16  FTAs  and  also concluded the FTA negotiations with E.U and New Zealand.

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