Textile Industry: US Tariffs Impact & India’s Competitive Edge (2025)

Tariff Hike by the US
25% tariff imposed on Indian textile and apparel exports.

Affects India’s largest export market in this sector – the United States.

Export Snapshot:
Jan–May 2025 exports to US:
$4.59 billion
13% increase YoY from $4.05 billion (2024).

Peer Tariff Comparison:
Cambodia 36%
Bangladesh 35%
India 25%
Vietnam 20%
Indonesia 19%

India fares better than Cambodia & Bangladesh, but lags behind Vietnam & Indonesia.

India’s strength lies in:
-Raw material availability
-Stable supply chain
-Support from the “China Plus One” strategy
-Ongoing trade talks expected to ease tensions.

Industry Concerns
#Tariff adds uncertainty and may impact:
-Export earnings
-Job creation in India
#Industry calls for government support measures.

Conclusion:
Tariffs are a challenge, but India retains a competitive edge.

Strategic positioning and strong fundamentals can help India sustain momentum in global markets.