India is preparing a major global push to safeguard its textile sector after the United States imposed a steep 50% tariff on Indian textile imports, effective August 27. The move, announced by former US President Donald Trump, could impact exports worth over $48 billion.
To counter this, the government is planning dedicated outreach programmes across 40 countries, focusing on sustainable and innovative textile products to expand India’s global market share.
India’s Outreach Strategy
According to officials, the outreach will cover 40 key markets, including Australia, Canada, France, Germany, Italy, Japan, Mexico, Russia, South Korea, the UAE, the UK, and the Netherlands.
The approach is to position India as a reliable supplier of quality and sustainable textiles, while leveraging Export Promotion Councils (EPCs) and Indian Missions abroad to lead the effort.
“Together, these 40 countries represent over $590 billion in textile and apparel imports. India currently holds only 5–6% of this share, leaving vast opportunities for growth,” an official told PTI.
Role of EPCs and Industry Stakeholders
EPCs are expected to play a central role in this diversification strategy by:
- Conducting market mapping to identify high-demand products
- Linking textile clusters like Surat, Panipat, Tirupur, and Bhadohi with international buyers
- Leading India’s participation in global exhibitions, trade fairs, and buyer-seller meets
- Promoting textiles under a unified “Brand India” vision
- Guiding exporters on FTAs, sustainability standards, and certifications
The government believes that free trade agreements (FTAs) with key markets will further improve India’s competitiveness.
Sectors Likely to Be Impacted
While textiles remain the most exposed, other Indian industries facing pressure from higher US tariffs include:
- Gems and jewellery
- Shrimp and marine products
- Leather and footwear
- Animal products
- Chemicals
- Electrical and mechanical machinery
In FY25, India’s textile and apparel industry was valued at $179 billion, with $37 billion in exports. Globally, textiles and apparel imports stood at $800.77 billion in 2024, where India ranked sixth-largest exporter with a 4.1% share across trade with 220 countries.
India’s Long-Term Goal
Despite tariff setbacks, India is betting on diversification and sustainability to expand its global textile footprint. With focused outreach across key markets, the government aims to boost exports, reduce US dependence, and strengthen India’s position as a global textile hub.
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