The Department Related Parliamentary Standing Committee on Commerce, headed by Rajya Sabha MP Dola Sen, presented its 200th Report on ‘Evaluation of India–US Trade Relations’ to both Houses of Parliament. The committee examined the challenges arising from US tariff measures and recommended measures to protect affected sectors and improve India’s export competitiveness.

The committee said greater diversification towards technical textiles, MMF products, sustainable textiles, home furnishings and high-value apparel would be necessary to strengthen India’s long-term competitiveness in international markets.

It also sought faster implementation of PM MITRA Parks, the Production Linked Incentive (PLI) Scheme and the Samarth Scheme to modernise the textile sector and improve productivity. In particular, it recommended that the Ministry of Textiles establish specialised MMF manufacturing clusters within new PM MITRA parks, giving micro, small and medium enterprises (MSMEs) easier local access to synthetic raw materials and helping production align with global demand, Rajya Sabha Secretariat said in a press release.

The panel also recommended strengthening support available under the Remission of Duties and Taxes on Exported Products (RoDTEP), Rebate of State and Central Taxes and Levies (RoSCTL), Interest Equalisation Scheme and other export promotion measures.

Liquidity support for textile MSMEs should be enhanced through concessional working capital, export credit, credit guarantee cover and faster disbursement of financial assistance, it said. Banks and financial institutions should also ensure timely sanction of export credit to viable exporters facing temporary stress from tariff-related disruptions.

Significantly, the committee proposed exploring an emergency relief programme under RoSCTL to compensate MSME textile exporters for price reductions demanded by US buyers. Such support, it said, could provide a financial cushion against business closures and potential job losses.

To address delivery-time disadvantages, the committee recommended that the Ministry partner with industry bodies to establish government-subsidised textile warehousing hubs at major US shipping entry points. It also proposed green-channel, fast customs corridors at Indian ports. The combination of locally held US inventories and quicker customs clearance could help Indian exporters shorten delivery lead times, reduce dependence on intermediaries and compete more effectively with faster global suppliers.

The committee also highlighted challenges facing India's carpet and handloom industries. It warned that higher tariffs and weaker US demand could reduce artisan incomes and employment while allowing competing suppliers to increase their market share.

For carpet exporters, it recommended marketing assistance through trade fairs, branding, Geographical Indication (GI) promotion, buyer-seller meets and design development. For handloom exporters and traditional weaving communities, it sought enhanced support for international exhibitions, branding, GI promotion, digital marketing, product diversification, design innovation and expansion into new export markets.

More broadly, the committee identified stagnation in traditional, labour-intensive sectors such as textiles and clothing as an area requiring policy intervention. It recommended technology-upgradation grants and a specialised market-linked incentive scheme to help textile exporters diversify product designs in line with changing US consumer preferences.