Textile Demand Resilience, CBAM Compliance, and Government Export Relief

Published

The Cotton Association of India (CAI) expressed strong optimism at its 104th AGM, noting that new Free Trade Agreements are creating robust demand for Indian textiles and cotton products across the global value chain. CAI is working on the India Cotton Index to enhance market transparency while promoting sustainable practices and exploring price-support alternatives to MSP. Addressing environmental regulations, FIEO President S.C. Ralhan outlined strategies for navigating the EU’s Carbon Border Adjustment Mechanism (CBAM), urging policy support for MSMEs through carbon accounting, clean technology adoption, and a dedicated Green Export Transition Fund. To protect domestic exporters from West Asian geopolitical uncertainties and freight disruptions, the Indian Government extended the RODTEP scheme until December 31, 2026, and enhanced ECGC insurance coverage to 95% under Component II of the RELIEF intervention.

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