Home textiles and made-ups, used for furnishing and decorating households, is the worst hit segment in the textile industry, with at least $2 billion (Rs 17,094 crore) worth of orders either being subject to negotiations or put on hold, according to the Home Textile Exporters Welfare Association (HEWA).
This segment of the textile industry produces fabric-based items such as bed linen, towels, table mats, aprons, napkins, curtains and upholstery. Globally, India exports textiles worth nearly $37 billion annually, of which garments is the largest segment at $16 billion, followed by home textiles and made-ups which account for $10 billion.
Emails from US buyers to Indian suppliers, showed buyers threatening to cancel orders if not given a 50 percent discount. “Exporters have no option but to honour their discount demands as the US is the biggest market for our segment.
We expect to expand our client base further in the US once the tariffs kick in, which would put India in an advantageous position compared to other majors in the industry such as China, Vietnam and Bangladesh,” said Vikas Singh Chauhan, Director, HEWA.
Trump slapped higher tariffs on competitor countries in the segment, with Vietnam staring at a 46 percent tariff, Bangladesh 37 percent, Cambodia 49 percent, and Pakistan 29 percent. In the absence of itemised taxes slapped by the US on China, the tariffs on the world’s biggest exporter could range from 54 percent to 245 percent in the textile segment. Compared to these countries, India has been served with a tariff of 26 percent.
News Curtesy: Money Control