Amid US tariff uncertainties and recent RoDTEP rate cuts,
Iran-Israeal/US war has added to the challenges being faced
by the Indian textile and apparel sector, industry body Confed
eration of Indian Textile Industry .
CITI is closely tracking developments in West Asia as a
significant portion of textile and apparel exports is headed there
and looks forward to an early resolution and a return to
normalcy.
The trade body welcomed the assurance of support by the Indian
authorities for continuity of EXIM logistics and mitigate any
disruptions to India’s trade flows.The UAE, particularly, is one of
the largest markets for Indian textile and apparel exporters in
West Asia. In 2024, the UAE was the 4th largest market for
India’s textile and apparel exports, after the US, EU, and
Bangladesh.“Coming in the backdrop of the continuing
uncertainty on the US tariffs issue and the recent reduction in the
rates under the Remission of Duties and Taxes on Exported
Products (RoDTEP) Scheme, the tumultuous developments in
West Asia have further added to the challenges faced by Indian
textile and apparel exporters,” CITI Chairman Ashwin Chandran
said. “Considering the narrow margins under which textile and
apparel exporters operate, any escalation in the cost of logistics
and insurance due to the West Asia scenario puts them in a very
tight spot, affecting their ability to meet contractual obligations
besides significantly raising operating costs,” Chandran pointed
out.Chandran said the stakeholder consultation organised by the
Department of Commerce on March 2 to discuss the ongoing
developments in West Asia was a great source of comfort. “It
reflects the Government’s continued commitment to the cause of
Indian industry,” he added. The textiles and apparel sector
is the second-biggest generator of jobs in India and a
major contributor to the national GDP and exports.
Textiles and apparel exports had been severely
impacted in the second half of 2025 due to the steep 50
percent US tariff on Indian goods, which was in place
from late August 2025 till early February 2026.