SDG 8: Decent Work and Economic Growth
Institutions: Ministry of Commerce and Industry
India will roll out targeted outreach programmes in 40 countries, including the UK, Japan, South Korea, Germany, and the UAE, to boost textile exports after the US imposed a steep 50% tariff on Indian goods effective August 27, 2025. The move, affecting over $48 billion worth of shipments, threatens labour-intensive sectors such as textiles, gems and jewellery, shrimp, leather, and machinery.
Export Promotion Councils will spearhead diversification efforts, linking clusters like Surat, Panipat, Tiruppur, and Bhadohi to high-demand global markets worth $590 billion. They will also guide exporters on leveraging FTAs, sustainability standards, and global branding. Industry associations have warned of production halts in Tiruppur and Surat due to cost disadvantages of 30β35% against competitors like Bangladesh and Vietnam.
While the government is focusing on diversification and FTAs with the UK, EU, and EFTA countries, exporters seek urgent fiscal support to sustain operations until trade negotiations with Washington resume.
Relevant question for policy stakeholders: Can Indiaβs diversification strategy and FTA push compensate for lost US market share in labour-intensive exports?
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https://fieo.org/uploads/files/file/01092025.pdf