The 50% tariff will not be sustainable even for the U.S. customers and is a temporary hiccup; the next two decades belong to India (on the textile front), Sudhir Sekhri, Chairman, Apparel Export Promotion Council (AEPC), said in Tiruppur recently. The tariff rate will affect the U.S. consumers as well, since increase in retail price will lead to inflation. The question (of arriving at a resolution) is when, and not why or how, Mr. Sudhir said after inaugurating the 52nd India International Knit Fair.
Retailers in U.S. who have long-term presence are not going to abandon Indian textile products. Both sides are taking a cut in profitability. India and U.S. are working for early resolution, by two to four weeks.
The Textile industries in Tiruppur and elsewhere have the resilience to absorb the tariff impact for the next two months, the AEPC Chairman said.
Textile exporters are expecting the Central Government to come out with new policies and assistance, hopefully in a week’s time, he said. Out of the apparel export to the value of 16 billion U.S. dollars, 5.2 billion pertain to the United States.
By the time the tariff took effect, merchandise to the value of 2.2 bn shipped out, and $1.2 bn’ worth products were in pipeline. Business to the extent of $2.5 bn has been impacted by the 50% tariff, Sudhir explained. To explore new markets, the AEPC had organised a buyer-seller meet at Jeddah from September 25 to 27, and subsequently conducted a fair in Russia. The Free Trade Agreement is expected to be operationalised by the end of March next year. The market in Australia with which India has Free Trade Agreement, and markets in Scandinavian countries and non-traditional markets have been identified for textile exports, he said.
The three-day event organised by the India Knit Fair Association, Tiruppur, carries the theme: Knitting a Greener Planet Sustainability and ESG (Environmental, Social and Governance) Leadership. Appreciating the large variety of fabrics showcased for all age groups in the Fair, Sudhir said he was particularly impressed by the shift of manufacturers towards man-made fibres.
Chairman of India Knit Fair Association, Tiruppur, A. Sakthivel, said out of apparel worth Rs. 14,000 cr, export of merchandise to the extent of Rs. 1,500 cr had been affected by the U.S. tariff. Sakthivel was hopeful of the overall turnover of Tiruppur textile export business to rise from the existing Rs. 45,000 cr to Rs. 49,000 cr, during 2025-26. There was no job-loss due to the tariff issue, and no factory has been closed in Tiruppur. The industry was even prepared to absorb 20,000 more workers, Sakthivel said. In the last three years, the composition of man-made fibres in textile exports in Tiruppur has risen from five to 14%, Mr. Sakthivel said.
K.M. Subramanian, president of Tiruppur Exporters’ Association and other functionaries took part.
