US Trade Deal Boosts Indian Textiles: Tariffs Cut to 18%, Exports to Revive
Business
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Moneycontrol•02-02-2026, 23:30
US Trade Deal Boosts Indian Textiles: Tariffs Cut to 18%, Exports to Revive
- •A recent US trade deal has significantly reduced tariffs on Indian textile and apparel goods from 25% to 18%, easing pressure on exporters.
- •The US market accounts for nearly a third of India's overseas textile sales, with shipments valued at $10.05 billion in FY24.
- •The sector faced strain after the US imposed a 50% tariff in late August, leading to a 31.4% decline in US imports from India in November 2025.
- •Indian exporters offered heavy discounts and diversified to other markets like the UK and Europe to retain buyers during the tariff uncertainty.
- •The textile and apparel sector contributes approximately 2% to India's GDP, making the tariff reduction crucial for economic growth.
Why It Matters: The US trade deal's tariff reduction offers a crucial relief and revival opportunity for India's textile exporters.
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