An urgent appeal has been issued to Hon’ble Minister Piyush Goyal calling for immediate government intervention to protect India’s textile and apparel MSMEs, which are facing severe challenges in the wake of a 25% tariff imposed by the United States, effective August 1.
Bhadresh Dodhia, Immediate Past Chairman of MATEXIL (Manmade and Technical Textiles Export Promotion Council) and Co Chairman of Bharat Tex 2025, shared the message on LinkedIn, highlighting the threat this tariff poses to the backbone of India’s manufacturing ecosystem. As the textile MSMEs grapple with rising cost pressures, a sharp loss in export competitiveness, and disrupted contracts, the appeal stresses that government action is essential to prevent job losses and economic disruption.
Key concerns raised include:
• Loss of Competitiveness: Indian exporters now face higher duties than competitors in Bangladesh, Vietnam, and Indonesia
• Contract Disruptions: Long-term US buyer agreements are being renegotiated or cancelled, leading to revenue loss
• Financial Strain: Declining orders are causing cash flow challenges amid high input costs and delayed payments
• Value Chain Impact: Suppliers, processors, logistics partners, and allied sectors are all affected
• Stalled Growth: Expansion plans have been shelved due to export uncertainty and shrinking demand
The appeal urges the Government to step in with mechanisms such as:
• Allowing access to raw materials at internationally competitive rates to reduce cost burdens.
• Implementing financial relief measures like interest rebates, export credit support, and PLI style schemes for exporters.
• Fast tracking the proposed India US Bilateral Trade Agreement (BTA) to help restore parity and resolve tariff mismatch challenges.
MATEXIL and industry stakeholders believe that India’s textile export goal of $100 billion by 2030 is now at risk unless urgent policy-level interventions are implemented. They emphasize that preserving textile MSMEs is not just about export earnings, but also about safeguarding employment for millions in India’s hinterland.
In parallel, Commerce Minister Piyush Goyal has reaffirmed India’s commitment to protecting national interests, stating the government will take “all necessary steps to safeguard farmers, workers and entrepreneurs” amid rising US tariff pressure. He also emphasized India’s focus on fair trade without compromising national priorities and has begun consultations with exporter bodies between August 2–4 in Mumbai to assess sectoral impact and discuss remedial actions.
The appeal by Bhadresh Dodhia echoes a broader consensus among textile exporters and industry bodies calling for coordinated action to ensure that India’s textile MSMEs remain globally competitive, resilient, and future-ready during this challenging period.
