The Indian textile and leather industry welcomed positive news on Tuesday after the United States announced a sharp reduction in tariffs on Indian exports, making them more competitive in the global market. The decision was announced by the White House late Monday night.
US President Donald Trump announced a trade deal with India, cutting tariffs on Indian goods to 18 per cent from the earlier 50 percent. The tariff reduction comes in exchange for India halting Russian oil purchases and lowering trade barriers.
Industry hopeful of export revival and job growth
The move brings relief to the textile and leather sectors, which have faced severe challenges for the past five months following the imposition of a 50 per cent tariff from August 27. Industry players believe the reduction will help exporters regain lost ground in the US market.
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Confederation of Indian Textile Industry (CITI) Chairman Shri Ashwin Chandran said the tariff cut would restore competitiveness for Indian exporters. He said the reduction in the US tariff on Indian goods to 18 percent will ensure that the textile and apparel exporters are once again in a position to compete effectively in the US market, the single-largest market for India’s textile and apparel exports. He added that the deal would allow factories to run at full capacity again and help revive job creation.
Prabhu Dhamodharan, Convenor, Indian Texpreneurs Federation (ITF), Coimbatore, said that the sector was now back on a level playing field in the US market. He noted that with key FTAs nearing closure and rising US sourcing interest from India, export prospects were improving steadily. According to him, from FY 2026–27, the sector could see month-on-month double-digit growth in apparel and home textile exports, pushing the monthly apparel export run rate to around $1.5 to $1.6 billion from the current $1.27 billion.
Commenting on the industry’s response to recent challenges, he said, “It is commendable of Indian exporters for their resilience, adopting survival-export strategies, offering discounted prices, and protecting India’s export market share during a challenging phase. Going forward, the focus must remain on building competitiveness to ensure sustained double-digit export growth over the next decade.”
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As per reports, G Arulmozhi, President, Open End Spinning Mills Association, Coimbatore, said that Indian textile exports to the US are expected to rise sharply as the new import duty on India is lower than that imposed on major competitors such as Bangladesh, Pakistan, Vietnam, Indonesia and China. He added that the tariff cut would strongly benefit exporters in Tiruppur, Karur and Erode, as well as open-end and spinning mills supplying yarn, leading to sector-wide growth.
He further said that the US tariff reduction, along with forthcoming duty-free trade agreements with the UK and EU, would drive “remarkable” growth in the Indian textile industry and significantly increase employment opportunities across the sector.
