Union Minister Giriraj Singh Engages Export Councils, EPCH on Tackling U.S. Reciprocal Tariffs

On Aug 13, 2025

New Delhi – 13th August’2025 – Giriraj Singh, Union Minister of Textiles, Govt. of India along with Pabitra Margherita, Minister of state for Textiles, Govt. of India; Neelam Shami Rao, Secretary Textiles; Shubhra, Trade Advisor, Ministry of Textiles; Joint Secretary, Ministry of Textiles: Ajay Gupta, Ms. Padmini Singla; Dr. M Beena, DC (Handloom) and Amrit Raj, DC (Handicrafts) met the heads of various Textiles Export Promotion Councils and Industry Associations to discuss the impact of U.S. Reciprocal Tariffs on Indian exports and explore potential mitigation strategies.

The Export Promotion Council for Handicrafts (EPCH) was represented by Dr. Rakesh Kumar, Director General in the role of Chief Mentor – EPCH and Chairman – India Exposition Mart Ltd. (IEML), along with Rajesh Jain and Rajendra Gupta, Members of the Committee of Administration – EPCH; R. K. Verma, Executive Director – EPCH and Rajesh Rawat, Additional Executive Director – EPCH.

Giriraj Singh, Union Minister of Textiles, Govt. of India shared that “the current tariff scenario presents undeniable challenges, but it also compels us to strengthen our strategies and diversify our markets. While government will continue in engaging with the US to secure favourable terms for our exporters, we must also expand our footprint in emerging and high-potential regions such as the European Union, the Middle East, East Asia and Latin America. Diversification will not only reduce our dependence on a single market but also open new growth opportunities for our exporters. The government remains committed to supporting the sector with targeted policy interventions, promotional incentives and strategic trade negotiations to ensure that Indian exports continue to thrive globally.”

Dr. Rakesh Kumar, Director General in the role of Chief Mentor – EPCH and Chairman IEML said that “the 50% U.S. tariff is a major challenge, but also a moment to rethink how we do business. We’ve recommended urgent measures like a 30% Cost Equalisation Incentive, higher Interest Equalisation Scheme benefits and Income Tax exemptions be provided in line with erstwhile Section 80HHC of the Income Tax Act to safeguard exporters. He further added that “we’re also working on new supply chain model such as warehousing and drop shipping, allowing exporters to fulfil orders directly to customers in overseas markets. We also see great potential in opening flagship and partner retail stores in key global cities to supply products directly to customers, thereby reducing dependence on intermediaries and improving profit margins for our exporters.

Rajesh Jain, Member CoA EPCH said that “Due to this extreme tariffs, our exporters are under extraordinary pressure, from large-scale order cancellations to intense competition from countries with better tariff terms. We urge the government to act swiftly with both fiscal and diplomatic interventions to safeguard this sector’s future.”

Rajendra Gupta, Member CoA EPCH said that “the handicrafts sector stands at a critical situation and the current global trade scenario requires timely and focused support. Our exporters are ready to adapt and innovate, but they cannot do it alone. We request the government to extend targeted relief measures and sustained policy backing so that this sector can continue to grow, compete globally and safeguard the livelihoods of millions.”

During the meeting the Minister gave a patient hearing to the issues raised.

Export Promotion Council for Handicrafts is a nodal agency for promotion of exports of handicrafts from the Country and create brand image of magic of the gifted hands of millions of artisans and craftspersons engaged in production of home, lifestyle, textiles, fashion jewellery & accessories products in different craft clusters of the Country. The overall Handicrafts exports during the year 2023-24 was Rs. 32,759 Crores (US $ 3,956 Million) and exports of handicrafts to the USA during the year 2023-24 was Rs. 13,381.07 Crores (US $ 1,616.12 Million) with a share of 41% of total exports of Handicrafts from India informed by R. K. Verma, Executive Director, EPCH.