Indian textiles industry not worried about tariffs: Textiles Secretary Neelam Rao

New Delhi: Any possible increase in tariffs by the United States is unlikely to impact India's textiles exports as the country has been competing in the sector on the merits of its products, Textiles Secretary Neelam Shami Rao told DH.

“India has been competing on its own merits and merits of its own products. We are not one of those countries where they get the benefit of being the least developed country,” Rao said alluding to the preferential trade access enjoyed by Bangladesh and other countries categorised as Lead Developed Country (LDC).

Preferential treatment like duty-free access and relaxed rules of origin norms in the markets like European Union and United Kingdom provide Bangladesh a competitive edge in the textiles sector.

“India is among the six top textiles exporting countries. I don’t see any instability in our position,” Rao said

As per official data, India contributed 3.9 per cent of the global trade in textiles and apparel during the year 2023-24. Nearly half of India’s shipments of textiles and apparel go to the US and EU countries.

Rao said higher allocations and tariffs related measures announced in the Union Budget 2025-26 will help improve the competitiveness of the sector.

“Normally there used to be an 8-10 per cent increase. This year we have got around a 20 per cent increase. We have been asked to spend more and take the industry forward,” Rao said.

In the Union Budget, the allocation for the Ministry of Textiles has been increased to Rs 5,272 crore for 2025-26, a rise of 19 per cent year-on-year. Rao said the measures announced in the Budget would improve quality and productivity of the cotton industry and foster innovation.

“What is written about MSME, exports and manufacturing, in that larger umbrella Indian textile is very well covered. Around 80 per cent of the textiles industry is MSME. Whatever applies to MSME will apply to Indian textiles. Whatever applies to exports also applies to textiles,” she said.

On production-linked incentive (PLI) scheme for textiles, Rao said currently the focus is on delivery as per the plans outlined in the first phase of the scheme.

Asked about the plans for the second tranche of PLI scheme for textiles, Rao said, “Once we deliver on PLI 1.0 certainly there is always a reason that we should move forward. We will see what rolls out the next. It has to go through the processes, consultations and many things.”