West Asia Developments A Concern For Textiles & Apparel Sector: CITI

(MENAFN- KNN India) New Delhi, Mar 3 (KNN) Amid US tariff uncertainties and recent RoDTEP rate cuts, Iran-Israeal/US war has added to the challenges being faced by the Indian textile and apparel sector, industry body Confederation of Indian Textile Industry (CITI) has said.

CITI is closely tracking developments in West Asia as a significant portion of textile and apparel exports is headed there and looks forward to an early resolution and a return to normalcy.

The trade body welcomed the assurance of support by the Indian authorities for continuity of EXIM logistics and mitigate any disruptions to India's trade flows.

The UAE, particularly, is one of the largest markets for Indian textile and apparel exporters in West Asia. In 2024, the UAE was the 4th largest market for India's textile and apparel exports, after the US, EU, and Bangladesh.

“Coming in the backdrop of the continuing uncertainty on the US tariffs issue and the recent reduction in the rates under the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme, the tumultuous developments in West Asia have further added to the challenges faced by Indian textile and apparel exporters,” CITI Chairman Ashwin Chandran said.

“Considering the narrow margins under which textile and apparel exporters operate, any escalation in the cost of logistics and insurance due to the West Asia scenario puts them in a very tight spot, affecting their ability to meet contractual obligations besides significantly raising operating costs,” Chandran pointed out.

Chandran said the stakeholder consultation organised by the Department of Commerce on March 2 to discuss the ongoing developments in West Asia was a great source of comfort.“It reflects the Government's continued commitment to the cause of Indian industry,” he added.

The textiles and apparel sector is the second-biggest generator of jobs in India and a major contributor to the national GDP and exports. Textiles and apparel exports had been severely impacted in the second half of 2025 due to the steep 50 percent US tariff on Indian goods, which was in place from late August 2025 till early February 2026.

(KNN Bureau)

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