Indian textiles shift to Europe due to tariffs

VTV.vn - Facing US taxes of up to 50%, the Indian textile industry is accelerating its shift to Europe, hoping to take advantage of the EU-India FTA that is about to be signed to expand exports.

Workers at a garment factory in India. (Source: indvstrvs.com)

Facing tariffs of up to 50% from the US, Indian textile manufacturers are trying to shift their consumption markets, with Europe being one of the important destinations.

According to textile industry associations, many Indian export enterprises are making efforts to improve their facilities and raw material sources, allowing them to meet the strict standards of the European Union (EU) for textile products such as chemicals, labeling and origin.

The fact that the EU and India are working towards reaching a free trade agreement by the end of this year has also contributed to promoting the Indian textile industry to pay more attention to this market.

The US is still the largest market for Indian textiles, accounting for nearly 30% of export turnover, but high tariffs are making exporters want to reduce their dependence on this market in the future.

President Donald Trump doubled import tariffs on goods from India in August, making it one of the highest-taxed partners of the US, affecting goods ranging from clothing and jewelry to shrimp and other agricultural and aquatic products.

Trade negotiations between India and the EU have entered a crucial phase, with both sides working to finalise a free trade agreement by the end of this year. The EU is India’s largest goods trading partner, with two-way trade reaching $137.5 billion in the fiscal year ending March 2024 – an increase of nearly 90% over the past 10 years.

Source: https://vtv.vn/det-may-an-do-chuyen-huong-sang-chau-au-do-thue-quan-100251015062723434.htm