Textile, export sectors seek special relief package from finance minister
This story was originally published at 20:57 IST on 2 September 2025
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MUMBAI – Domestic textile industry associations and export promotion councils have urged Finance Minister Nirmala Sitharaman to provide a "special relief package" in view of the threat posed to these sectors by US tariffs. The textile industry has sought measures such as extension of the two-year moratorium on repayment of loan principal amounts to prevent textile units from becoming non-performing assets and to help them retain existing US customers "to the maximum extent possible" and to sustain their financial viability until they can find alternative markets.
"...the US market accounts for approximately 28% (USD 10–11 billion) of India's total textile and clothing exports. Of this, readymade garments constitute around 60%, while yarn, fabric, and made-ups contribute about 32%," the textile industry associations and export promotion councils said in a joint memorandum submitted to Sitharaman.
"The abnormal tariff imposed by the US would therefore severely impact not only the growth of exports but also the financial viability of thousands of textile units catering to the US market, particularly those in the powerloom, independent weaving, readymade garment, made-up and kitchen linen segments that would also affect the spinning sector and the cotton farming community," as per the memorandum. Major textile clusters in Tamil Nadu, including in Coimbatore, Tiruppur, Erode, Karur, Madurai, Theni, and Virudhunagar, are the worst affected. End
Reported by Ashutosh Pati
Edited by Rajeev Pai
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