Tailor-made to cushion Trump tariff

Textiles sector, hit by US levy, sees $11-bn boost

- NARAYANAN V

INDIA'S TEXTILE AND apparel export industry expects the historic trade deal between India and the European Union (EU) to significantly lift the country’s market share and double apparel exports to the region to about $11 billion. The agreement, once implemented, is also expected to cushion the labour-intensive sector by enabling diversification away from the US, which has imposed a steep 50% tariff on Indian goods.

“The India-EU free trade agreement is a historic move that can reset this imbalance and unlock growth in labour-intensive exports, especially apparel,” Prabhu D, convenor of Coimbatore-based Indian Texpreneurs Federation (ITF), said. India’s apparel exports to the EU stands at $5.5 billion, with knitwear accounting for 56% and woven apparel 45%. “Both segments are well-placed to scale up,” he added.