CITI Calls for Schemes to Drive Investment and Scale in T&A industry to boost exports towards US$100 billion target by 2030

New Delhi, 30th Dec 2024: Ministry of Textiles has set an ambitious target of achieving US$ 100 billion Textile and Apparel (T&A) exports by 2030. Markets like USA and EU will play a key role in achieving this ambitious target and hence there is a dire need for the Government to come up with various export promotion initiatives to boost T&A exports in these markets.

Chairman CITI, Shri Rakesh Mehra said that “USA accounts for about 27% of India’s T&A exports. During the last 5 years, India’s exports to USA have increased at a CAGR of about 3.3%. It would require our exports to grow at a CAGR of about 16% to achieve the visionary target of US$ 100 bn exports by 2030.”
Shri Mehra highlighted the potential opportunities arising from the recent political changes in the USA. “The newly elected President of the USA, Mr. Trump, is likely to announce additional tariffs on Chinese products as one of his initial measures upon taking office. Since China is a major supplier of T&A products to the USA, this tariff shift presents a unique opportunity for India to expand its share in the US market,” he said.

To capitalize on this opportunity, Shri Mehra emphasized the need for strategic marketing initiatives, including trade exhibitions, buyer-seller meetings, and partnerships with US retailer associations. “Enhancing our visibility and presence in the US market through these targeted efforts will be crucial for tapping into this potential,” he added.

In addition to the marketing efforts, CITI called for the continuation of schemes like Interest Equalization Scheme (IES), and RoDTEP schemes for AA/SEZ and EoU units beyond 31st December 2024 to ensure cost competitiveness of the Indian T&A products. Furthermore, income-tax relief for MSME manufacturing units was stressed to ensure sustainable growth within the textile sector.

“These policy interventions, combined with focused initiatives aimed at key export markets like the USA, will strengthen India’s overall export strategy and enhance the global competitiveness of the Indian textile industry,” Shri Mehra concluded.