India-US Trade Deal Textile Exports receive a major boost as tariffs on Indian apparel and garments are slashed from 50% to 18%, strengthening exporters’ global competitiveness. Union Textiles Minister Giriraj Singh hailed it as a “decisive boost” under PM Narendra Modi’s leadership, crediting it for enhancing competitiveness, creating jobs, and supporting MSMEs.
Key Benefits
Lower tariffs give India a cost edge—2% below rivals—reviving stalled orders that form 28% of textile exports to the US, the largest market. Industry leaders like CITI Chairman Ashwin Chandran expect factories to run at full capacity, restoring jobs lost due to prior high duties.
Government Role
PM Modi thanked President Trump for the deal, noting it benefits “Made in India” products and aligns with recent Budget measures strengthening the sector. This NDA initiative, alongside EU pacts, counters challenges faced by hubs like Tiruppur, fostering double-digit export growth in 2026-27.
Competitive Edge
| Competitor | US Tariff (%) | India’s Advantage |
|---|---|---|
| China | 37 | Significant cost lead |
| Vietnam | 19 | 1% lower tariff |
| Bangladesh | 20 | 2% edge for India |
Exporters anticipate MSME revival and market share gains from China, amid Bangladesh’s sector decline.
