Textile Ministry will discuss the impact of tariff, Union Minister will meet industrialists

The government has already begun making preparations to tackle the 25 percent tariff announced by US President Donald Trump. The textile industry of the country, which is US export-dependent, has also begun analyzing the tariff impact. The Textile Ministry has also begun preparing itself for this. Union Textile Minister Giriraj Singh will be meeting prominent industrialists in the near future about tariff. There will be a discussion in regarding the effect of tariffs with the industrialists. There will also be a discussion regarding the India-UK FTA in this meeting.

The order of US President Donald Trump to impose a 25 percent tariff on imports from India will come into effect from August 7. According to information received by news agency PTI from sources in the Textile Ministry, the government does not want to leave any stone unturned to reduce the potential impact of US tariffs. The government and the industry aim to export $100 billion worth of textiles by 2030.

Amar Ujala Sources said it would be premature to talk about any measures being considered to support domestic textile exporters regarding tariffs, but the government wants to know the industry's response. Also, it wants to discuss the challenges and opportunities in the UK-India FTA and other markets with untapped potential. Therefore, the Union Minister will talk to various industrialists and apparel export companies of the textile industry. The discussions will also focus on realizing the opportunities arising for the textile sector from the UK-India Free Trade Agreement.

A large part of India's textile industry exports is also dependent on the US. If the data is to be believed, 28 percent of the total textile exports from India go to the US alone. In such a situation, the tariff will have the greatest impact on this sector. In fact, in the past years, America has imported a large amount of textile products from India as well as Vietnam, Indonesia and Bangladesh.

Though America is presently imposing a 19 percent tariff on Vietnam, Trump has imposed a 20 percent tariff on Indonesia. In this context, India's textile industry will probably lose competition to American tariffs. It is worth noting that Bangladesh and Cambodia have also been in competition with India in this sector, but America has imposed higher tariffs on these countries. America's import duty on Bangladesh is 35 percent, and on Cambodia it is 36 percent.