India’s textile sector can no longer point to tariff disadvantages to explain lackluster exports, Commerce Minister Piyush Goyal says.
With Indian goods now benefiting from tariff rates matching or undercutting key rivals within major markets, he urged the industry to sharpen competitiveness, expand exports, and capture emerging worldwide opportunities.
India’s textile industry can no longer lean on unfavourable trading conditions to account for its weak export showing,
Commerce and Industry Minister Piyush Goyal says, contending that the country now holds a markedly stronger trade footing within major developed markets.
Speaking at the national workshop on ‘Leveraging FTAs: an Outreach Programme’ in New Delhi, Goyal said tariff disadvantages that had long dogged Indian textile exporters relative to rivals such as Bangladesh and Vietnam have narrowed considerably.
For years, Indian textile exporters confronted a challenging competitive terrain. Bangladesh benefited from its Least Developed Country (LDC) status, granting duty-free or low-duty entry into several developed markets, whilst Vietnam gained an edge through a network of trade agreements with major economies.
India, meanwhile, frequently faced steeper import duties for its textile products, making it tougher for Indian manufacturers to compete on price.
Goyal said that equation has now shifted. According to him, India’s newer trade agreements have strengthened market access to the extent that Indian exporters are either securing tariff rates comparable to rivals or, within several instances, more favourable rates still.
This shift carries particular weight for labour-intensive sectors such as textiles, where even a modest gap in import duties can sway sourcing decisions made by international buyers.
The minister argued the industry therefore needs to redirect its focus away from external obstacles and towards productivity, quality, scale and reliability.
“We have no more excuses left except performance. The ball is now entirely in our court,” says Piyush Goyal.
The wider government strategy centres on rendering India’s growing network of free trade agreements more useful to businesses on the ground.
Goyal says India has signed nine FTAs spanning economies with a combined GDP of roughly $60 trillion, delivering preferential access to nearly two-thirds of global trade.
The government anticipates India’s ongoing negotiations alongside planned reviews of existing agreements will eventually widen preferential access to around 75% of global trade.
Several additional negotiations remain underway or are being pursued, including talks with Canada, Mexico, Chile, the Mercosur bloc across South America, the Southern African Customs Union, the Gulf Cooperation Council and Israel.
India is likewise working to deepen or review existing arrangements with markets such as South Korea, Japan and the ASEAN region.
Meanwhile, agreements with Mauritius, Oman, the UAE, Australia, the UK and the EFTA countries already stand in force, whilst India’s agreements with New Zealand and the European Union are expected to further widen market opportunities.
The government now wants that access to reach businesses beyond large exporters. Goyal called for a nationwide campaign spanning all 780 districts and reaching MSMEs, traders, startups, entrepreneurs and women-led businesses.
For textiles, the message is growing increasingly clear: preferential market access can unlock the door, but competitiveness will determine whether Indian firms can walk through it.
The next challenge will be converting improved tariffs into larger orders through consistent quality, competitive pricing, swifter delivery, stronger supply chains and deeper participation within global value chains.
Image courtesy: ANI
