23 hours Ago By Yagnesh Bharat Mehta
Surat: The reciprocal tariff by the US is likely to create new opportunities for the Indian textile sector. If a free trade agreement is signed between the two countries, it can give global competitive strength to the Indian textile manufacturers. The industry is also demanding a subsidy to promote trade similar to the practice in China.
Among major textile products that are exported to the US are garments, home furnishings, and others. Being the largest man-made fabric manufacturing hub in the country, Surat has a sizeable share in the textile export to the USA. Manufacturers are now closely monitoring the situation.
"The tariff on other major exporters of textiles to the US is higher in China and Vietnam than in India. This will provide an opportunity for Indian manufacturers to compete globally against the major manufacturing centres," said Bharat Gandhi, chairman of the Federation of Indian Associations of Surat Weavers Industry (FIASWI). Of India's total textile export, 28% goes to the US.
Of the total MMF manufacturing in India , over 60% is made in the city and nearby industrial hubs. "In such a scenario, if a free trade agreement is signed with the US, we can secure our interest. The Indian textile sector will be in a position to compete globally," said Vijay Mevawala, president, Southern Gujarat Chamber of Commerce and Industry (SGCCI).
In a letter to Union commerce minister Piyush Goyal, SGCCI requested signing an FTA with the US. "The tariff rate for other Asian countries and major textile manufacturing hubs is also a point of consideration for India. The tariff against India is less than that against other countries, but if we succeed in reaching a consensus, we can secure our interest," added Mevawala.
Meanwhile, textile traders are worried about the tariff rates. "The hike in tariff will inflate the prices of textile products. It will adversely impact the sales in the US and ultimately bring down the exports," said Kailash Hakim, president, Federation of Surat Trade and Textile Associations (FOSTTA).
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