The US President’s extra 25 percent tariff has come into force to India. Now the total tariff imposed by the US on India has been 50 percent. The textile industry is expected to have the most impact. In such a situation, India has started preparing to do its ‘Special 40’ Plan Exhibit. After which the effect on the textile industry is expected to be completely over. Now the biggest question is that what is India’s ‘Special 40’ plan? How can Trump’s tariff be affected by Textile Industries with this plan? Let us also give you detailed information about it.
This is India’s ‘Special 40’ plan
The government has planned to run a special contact program in 40 countries to promote textile exports amidst imposing 50 percent customs duty on Indian textile products. Giving information on Wednesday, a government official said that this initiative included major countries like Britain, Japan, South Korea, Germany, France, Italy, Spain, Netherlands, Poland, Canada, Mexico, Russia, Belgium, Turkia, United Arab Emirates (UAE) and Australia.
The official said that India will work towards becoming a reliable, quality, durable and innovative textile products in these 40 markets. Indian Mission and Export Promotion Councils (EPCs) will play an important role in this. Although India already exports textile to more than 220 countries, these 40 countries together import around $ 590 billion global textile and apparel. India’s stake in this import is currently only five-six percent.
How much can be damaged to textiles
The official said that this initiative of special contact with these countries in such scenario is going to be an important step towards market diversification. The additional 25 percent fee imposed on Indian products by the US has come into effect from August 27. In this way, the total import duty has increased to 50 percent. It is expected to adversely affect the export of areas like garments, gems and jewelery, leather, fish, chemicals and machinery. Export damage to the US alone can be $ 10.3 billion.
India’s competitiveness may decrease
Mithileshwar Thakur, general secretary of the Apparel Export Promotion Council (AEPC), said that the 25 per cent fee rate had already been accepted by the industry, but now India’s competitiveness has declined by 30-31 per cent than countries like Bangladesh, Vietnam, Sri Lanka, Cambodia and Indonesia due to additional 25 per cent fees. Due to this, the Indian textile industry is almost out of the American market. He demanded immediate financial relief from the government so that the industry could overcome the crisis. He also said that the textile industry is now exploring the possibilities of compensation for losses through trade agreements with Britain and EFTA countries.
Such will also be helpful
Under the government’s scheme, EPCs will identify estimation of export markets and high -demand products. Apart from this, textual product clusters like Surat, Tirupur, Bhadohi will be linked to international occasions. Along with this, participation in international exhibitions and business fairs will also be ensured under the brand India campaign. Free trade agreements and trade agreements can help make Indian products competitive. In such a situation, this strategic effort for India can become an opportunity to strengthen its position in the Global Textile Export Market.