The organisation has also welcomed the assurance of support from Indian authorities to ensure continuity in EXIM logistics and mitigate potential disruptions to trade flows.
Confederation of Indian Textile Industry (CITI) has raised concerns over West Asia tensions, citing risks to textile and apparel exports, especially to the UAE, India’s fourth-largest market.
With existing pressures from US tariff uncertainty and RoDTEP rate cuts, exporters face rising logistics and insurance costs.
CITI welcomed government support to safeguard trade flows and industry stability.
The UAE, in particular, is one of the largest markets for Indian textile and apparel exporters in West Asia. In 2024, the UAE ranked as the fourth-largest destination for India’s textile and apparel exports, after the US, the EU, and Bangladesh.
The textiles and apparel sector remains the second-largest generator of employment in India and a major contributor to national GDP and exports, underscoring the broader economic implications of any regional instability.
“Coming against the backdrop of continued uncertainty surrounding US tariff issues and the recent reduction in rates under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, the turbulent developments in West Asia have further compounded the challenges faced by Indian textile and apparel exporters,” said CITI Chairman Ashwin Chandran.
“Given the narrow margins under which textile and apparel exporters operate, any escalation in logistics and insurance costs due to the West Asia situation places them under severe strain, affecting their ability to meet contractual obligations while significantly increasing operating costs,” Chandran added.
He further noted that the stakeholder consultation organised by the Department of Commerce on March 2 to discuss the ongoing situation in West Asia provided reassurance. “It reflects the Government’s continued commitment to supporting Indian industry,” he said.
Fibre2Fashion News Desk (CG)
