**US Tariffs to Impact 25% of India’s Textile Exports: Experts**

Fast summary

• Impact of US Tariffs: India’s textile exports to the US coudl face a 20-25% hit in the next six months due to 50% tariffs imposed by America, which is the largest market for Indian apparel exports. Experts report order cancellations and losses for exporters.
• Duty-Free Cotton Imports Extended: India has extended duty-free cotton imports until December 31, providing some relief and cost competitiveness by addressing price differentials between domestic and international cotton.
• Strategic Reorientation: Exporters are exploring alternative markets leveraging free trade agreements (FTAs) to mitigate the impact.
• Industry Response: Confederation of Indian textile Industry (CITI) highlights concerns about competitiveness while Apparel Export Promotion Council (AEPC) reassures government support in protecting sectors like farming, dairy, and fisheries.
• Sector Stats: India’s textile sector is projected to reach USD 179 billion by FY2024-25-USD 142 billion from its domestic market and USD 37 billion from exports.

Indian Opinion Analysis

The imposition of 50% tariffs by the US on Indian textiles presents important challenges for one of India’s most export-reliant sectors. The near-term forecast suggests a notable economic strain with export reductions expected. While duty-free cotton imports offer important cost mitigation benefits, they won’t fully offset the competitive disadvantage caused by steep tariffs in crucial markets like America.India’s response reflects pragmatic optimism: diversifying export destinations through FTAs and strategic reorientation may help cushion losses while preserving long-term growth trajectories. Ensuring sustained government support will be key as exporters adapt. For policymakers, this scenario underscores broader themes-such as improving domestic input pricing structures-and advancing bilateral trade negotiations to avoid similar disruptions elsewhere.

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