The Indian government is accelerating efforts to protect the textile industry, which has been severely impacted by the US reciprocal tariff regime. Employing over 45 million people, the sector faces significant stress as apparel exports to the US are now subject to a 63.9% duty, leaving Indian exporters at a 30–35% price disadvantage compared to competitors like Bangladesh, Vietnam, and Mexico.
In response, the government has identified 40 key markets across North America, Europe, Asia, Africa, Latin America, and Oceania, representing nearly three-fourths of global textile and apparel demand. Dedicated outreach programs are being rolled out to strengthen India’s modest 5–6% market share in these economies, with a focus on apparel, home textiles, technical textiles, and handicrafts. Early signs already indicate a positive uptick in exports to these countries.
Textile exports touched $3.10 billion in July 2025, reflecting a 5.37% year-on-year rise. Between April and July 2025, exports totaled $12.18 billion, marking a 3.87% growth over the previous year. Free Trade Agreements (FTAs), such as the recently signed India–UK Comprehensive Economic and Trade Agreement (CETA), are central to India’s diversification strategy. Export Promotion Councils, working with Indian missions abroad, will spearhead promotion drives to highlight India as a dependable supplier of sustainable and innovative textiles.
Industry concerns remain high, with projections of 15–20 lakh job losses in apparel if tariffs persist. To counter this, four industry-led committees are drafting measures focused on fiscal support, banking and credit relief, structural reforms in the textile value chain, and enhancing cost competitiveness through innovation.
Meanwhile, US Treasury Secretary Scott Bessent stated that India’s Russian oil purchases were not the only obstacle in the trade deal, suggesting that India’s delays in negotiations may have contributed to the imposition of 50% tariffs. However, he expressed optimism, saying: “I think at the end of the day, we’ll come together.”