Rajasthan implements Textile and Apparel Policy 2025 amid US reciprocal tariffs

Jaipur, April 5 (IANS) The Rajasthan government on Saturday implemented the Textile and Apparel Policy 2025 amid US reciprocal tariffs.

The new policy is poised to play a pivotal role in establishing Rajasthan as a modern centre for textile and apparel manufacturing.

An official claimed that in light of evolving global trade dynamics - particularly the recent reciprocal tariffs imposed by the US - the policy is expected to be a game-changer for textile exporters in the state.

He said that for the first time, garment manufacturing has been included in the policy to boost export potential, adding that the policy covers a broad spectrum of the textile value chain, from the production of natural and synthetic fibers to technical textiles, handlooms, wool processing, leather goods, and footwear manufacturing.

He said that provisions have been made to ensure the availability of raw materials, develop a skilled workforce, address environmental concerns, and build robust infrastructure, including logistics support.

He added that the policy also offers substantial financial incentives to attract investment and boost exports.

He said that to promote industrial growth in the textile and apparel sector, the policy includes incentives, like asset creation incentives, stamp duty and registration fee and many more.

The official said that the new policy comes at a critical time as the U.S. has imposed a 26 per cent reciprocal tariff on Indian textile imports, still lower than those on competing countries such as Bangladesh (37 per cent), Vietnam (46 per cent), Cambodia (49 per cent), Pakistan (29 per cent), and China (34 per cent).

Rajasthan, being the fourth-largest cotton-producing state in India, stands to benefit significantly. Textile hubs like Bhilwara, Jaipur, Pali, and Balotra are expected to leverage this opportunity to expand exports, particularly to the U.S. market.

The official added that with an abundant skilled workforce and favourable policy support, the Rajasthan Textile and Apparel Policy-2025 is set to become a catalyst for industry growth and employment, with a target of creating over two lakh new jobs.

--IANS

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