CITI Urges RBI To Extend Trade Relief To Spinning, Weaving & Processing Units Amid Export Slump

2025-11-19 02:07:27

(MENAFN- KNN India) New Delhi, Nov 19 (KNN) The Confederation of Indian Textile Industry (CITI) has urged the Reserve Bank of India (RBI) to extend its Trade Relief Measures announced on November 14 to include spinning, weaving, and processing units, citing growing stress across the textile value chain.

The appeal comes amid a sharp decline in India's textile and apparel exports in October 2025.

According to official data, textile exports fell 12.92 percent in October 2025 compared to the previous year, while apparel exports declined 12.88 percent.

Overall, combined textile and apparel exports contracted 12.91 percent year-on-year, reflecting continued global headwinds and the impact of high U.S. tariffs.

“The proactive steps RBI has announced to mitigate the impact of trade disruptions on exports arising on account of global headwinds will greatly benefit several segments within the textile and apparel sector that have been hit very badly due to the high US tariff,” CITI Chairman Ashwin Chandran said.

“Given that spinning, weaving and processing units are also facing pressure, adding these units to the list of sectors eligible under the trade relief measures would greatly benefit the overall growth and development of India's textile and apparel sector,” Chandran added.

India has set a target of developing a USD 350-billion textile and apparel industry by 2030, including USD 100 billion in exports.

He said expanding eligibility under the relief measures would help prevent mills from scaling down operations, mitigate risks of layoffs and avoid wage cuts in vulnerable segments.

According to some industry estimates, around 2 million spindles have been permanently shut down in India over the past five years as a result of financial distress.

Under the current framework, the RBI's Trade Relief Measures apply to sectors such as carpets and textile floor coverings, knitted and woven apparel and clothing accessories, and other made-up textile articles, including worn clothing and rags.

(KNN Bureau)

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