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US Tariff Relief And FTAs Set Stage For India Textile Export Surge

• By  Textile Excellence
• February 10, 2026

A fresh trade understanding between India and the United States that may bring tariffs on Indian goods down to 18% is expected to strengthen the country’s position against competitors such as Vietnam, China, Bangladesh, Pakistan, and Indonesia. Industry leaders believe the move, along with a series of free trade agreements, could trigger strong export momentum from FY27 onward.

India currently ships about US$11 billion worth of textile and apparel products to the US, accounting for nearly 28% of the country’s total exports in this segment. Monthly apparel exports, estimated at US$1.27 billion, are projected to rise to nearly US$1.6 billion if sourcing shifts toward India.

The sector also expects benefits from recent trade agreements. The pact with the European Union is likely to provide duty free access to a US$95 billion market where India’s share stands near 6% or about US$5.5 billion. Industry estimates suggest this figure could exceed US$11 billion in the coming years, supporting the goal of reaching US$100 billion in textile exports by 2030.

India currently ships about US$11 billion worth of textile and apparel products to the US, accounting for nearly 28% of the country’s total exports in this segment. Monthly apparel exports, estimated at US$1.27 billion, are projected to rise to nearly US$1.6 billion if sourcing shifts toward India.