NEW DELHI: India in its first countermeasure to US President Donald Trump's 50% tariff on Indian goods, announced dedicated outreach programmes in 40 key markets, including the UK, Japan, and South Korea, to boost textile exports, an official said on Wednesday.
The targeted push will also cover Germany, France, Italy, Spain, the Netherlands, Poland, Canada, Mexico, Russia, Belgium, Turkiye, the UAE, and Australia.
"In each of these 40 markets, this is proposed to pursue a targeted approach, positioning itself as a reliable supplier of quality, sustainable, and innovative textile products with the lead role of the Indian industry, including EPCs and Indian Missions in these countries," the official told news agency PTI.
The plan aims to position India as a reliable supplier of sustainable and innovative textile products, with Export Promotion Councils (EPCs) and Indian missions playing a lead role, officials added.
The 50% tariff effective on August 27, is set to hit major sectors including textiles, gems and jewellery, shrimp, leather, footwear, chemicals, and machinery.
India plans 40-country outreach strategy
Currently, India exports to more than 220 countries, but officials say 40 select markets, including the UK, Japan, South Korea, Germany, France, and Australia—hold the real key to diversification.
These nations together import over $590 billion worth of textiles and apparel annually, offering vast opportunities for India to enhance its market share, which currently stands at only around 5-6%, the official said.
"Recognising this, the government is planning dedicated outreach programmes in each of these 40 countries, with a focus on both traditional markets and emerging markets," he added.
Role of EPCs and FTAs
The official said Export Promotion Councils (EPCs) will play a central role in India’s diversification push. They will carry out market mapping, identify high-demand products, and connect specialised clusters, such as Surat, Panipat, Tirupur, and Bhadohi, to opportunities in the top 40 target countries.
EPCs will also drive India’s presence at international trade fairs, exhibitions, and buyer-seller meets, while running sector-specific campaigns under a unified Brand India identity.
In addition, they will guide exporters on leveraging free trade agreements (FTAs), meeting global sustainability standards, and obtaining required certifications.
"FTAs and negotiations with several of these geographies will help make Indian exports competitive, and there is a huge potential for growth in these areas," the official added.
Textile industry among worst hit
Experts have warned that the tariff war could damage both economies. Mark Linscott, Senior Advisor with The Asia Group, called it a shift from a “win-win” to a “remarkable lose-lose” situation.
The Trump administration’s steep import duties will hit key Indian sectors such as textiles and clothing, gems and jewellery, shrimp, leather and footwear, animal products, chemicals, and electrical and mechanical machinery.
In 2024-25, India's textile and apparel sector alone is projected at $179 billion, with a domestic market of $142 billion and exports worth $37 billion.
Globally, the textile and apparel import market stood at $800.77 billion in 2024. India, with a 4.1% share, is the sixth-largest exporter, maintaining its presence across 220 countries, but still holding vast room to grow.
Mithileshwar Thakur, Secretary General of the Apparel Export Promotion Council (AEPC), said the additional tariff has created a 30-31% cost disadvantage compared to rivals like Bangladesh, Vietnam, and Sri Lanka.
"The apparel industry was reconciled to the 25 per cent reciprocal tariff announced by the USA, as it was prepared to absorb a part of the tariff increase. But, the additional burden of another 25 per cent tariff, taking the overall reciprocal tariff against India to 50 per cent, has effectively driven the Indian apparel industry out of the US market as the gap of 30-31 per cent tariff disadvantage vis-a-vis major competing countries like Bangladesh, Vietnam, Sri Lanka, Cambodia & Indonesia," Thakur told PTI.
"This is extremely critical as it is not easy to recover the lost ground and regain market share, once buyers move away to other cost-competitive locations. In the meantime, we are also intensifying our efforts towards market diversification and looking at every possibility to take advantage of the trade deal with the UK and EFTA countries to control and contain the damage," he added.
Government’s next steps
The commerce ministry will meet exporters this week from affected sectors, including chemicals and jewellery, to find ways to reduce the tariff shock.
Officials said work is progressing on the proposed Export Promotion Mission (Budget 2025-26), which will serve as a long-term strategy for market diversification.
"In the next 2-3 days, the ministry will meet stakeholders on the diversification of exports," the official added.
The targeted push will also cover Germany, France, Italy, Spain, the Netherlands, Poland, Canada, Mexico, Russia, Belgium, Turkiye, the UAE, and Australia.
"In each of these 40 markets, this is proposed to pursue a targeted approach, positioning itself as a reliable supplier of quality, sustainable, and innovative textile products with the lead role of the Indian industry, including EPCs and Indian Missions in these countries," the official told news agency PTI.
The plan aims to position India as a reliable supplier of sustainable and innovative textile products, with Export Promotion Councils (EPCs) and Indian missions playing a lead role, officials added.
The 50% tariff effective on August 27, is set to hit major sectors including textiles, gems and jewellery, shrimp, leather, footwear, chemicals, and machinery.
India plans 40-country outreach strategy
Currently, India exports to more than 220 countries, but officials say 40 select markets, including the UK, Japan, South Korea, Germany, France, and Australia—hold the real key to diversification.
These nations together import over $590 billion worth of textiles and apparel annually, offering vast opportunities for India to enhance its market share, which currently stands at only around 5-6%, the official said.
"Recognising this, the government is planning dedicated outreach programmes in each of these 40 countries, with a focus on both traditional markets and emerging markets," he added.
Role of EPCs and FTAs
The official said Export Promotion Councils (EPCs) will play a central role in India’s diversification push. They will carry out market mapping, identify high-demand products, and connect specialised clusters, such as Surat, Panipat, Tirupur, and Bhadohi, to opportunities in the top 40 target countries.
EPCs will also drive India’s presence at international trade fairs, exhibitions, and buyer-seller meets, while running sector-specific campaigns under a unified Brand India identity.
In addition, they will guide exporters on leveraging free trade agreements (FTAs), meeting global sustainability standards, and obtaining required certifications.
"FTAs and negotiations with several of these geographies will help make Indian exports competitive, and there is a huge potential for growth in these areas," the official added.
Textile industry among worst hit
Experts have warned that the tariff war could damage both economies. Mark Linscott, Senior Advisor with The Asia Group, called it a shift from a “win-win” to a “remarkable lose-lose” situation.
The Trump administration’s steep import duties will hit key Indian sectors such as textiles and clothing, gems and jewellery, shrimp, leather and footwear, animal products, chemicals, and electrical and mechanical machinery.
In 2024-25, India's textile and apparel sector alone is projected at $179 billion, with a domestic market of $142 billion and exports worth $37 billion.
Globally, the textile and apparel import market stood at $800.77 billion in 2024. India, with a 4.1% share, is the sixth-largest exporter, maintaining its presence across 220 countries, but still holding vast room to grow.
Mithileshwar Thakur, Secretary General of the Apparel Export Promotion Council (AEPC), said the additional tariff has created a 30-31% cost disadvantage compared to rivals like Bangladesh, Vietnam, and Sri Lanka.
"The apparel industry was reconciled to the 25 per cent reciprocal tariff announced by the USA, as it was prepared to absorb a part of the tariff increase. But, the additional burden of another 25 per cent tariff, taking the overall reciprocal tariff against India to 50 per cent, has effectively driven the Indian apparel industry out of the US market as the gap of 30-31 per cent tariff disadvantage vis-a-vis major competing countries like Bangladesh, Vietnam, Sri Lanka, Cambodia & Indonesia," Thakur told PTI.
"This is extremely critical as it is not easy to recover the lost ground and regain market share, once buyers move away to other cost-competitive locations. In the meantime, we are also intensifying our efforts towards market diversification and looking at every possibility to take advantage of the trade deal with the UK and EFTA countries to control and contain the damage," he added.
Government’s next steps
The commerce ministry will meet exporters this week from affected sectors, including chemicals and jewellery, to find ways to reduce the tariff shock.
Officials said work is progressing on the proposed Export Promotion Mission (Budget 2025-26), which will serve as a long-term strategy for market diversification.
"In the next 2-3 days, the ministry will meet stakeholders on the diversification of exports," the official added.
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