Staff Reporter :
The US government’s decision to impose tariffs on all imports is set to benefit India’s textile industry, as competitors like Vietnam, Bangladesh, and China face relatively higher tariff rates.
Experts in India suggest that the country’s textile exports could gain a competitive advantage in the US market.
According to US trade data for 2024, China accounted for 30% of US textile imports, valued at $36 billion, followed by Vietnam at $15.5 billion (13%) and India at $9.7 billion (8%).
Bangladesh’s share dropped to 6% due to political instability. The total textile imports to the US in 2024 stood at $107.72 billion, with clothing imports rising by 2% to $79 billion.
Industry leaders suggest that India could further strengthen its position by reducing import duties on cotton from 11% to 0%, encouraging the US to reciprocate with lower duties on Indian textiles. The Apparel Export Promotion Council has urged the government to adopt a “zero-for-zero” duty policy to enhance competitiveness.
“India is well-positioned to expand its market share in the US, driven by this tariff edge. Ongoing trade negotiations may further enhance India’s position, particularly if India offers zero-duty import of cotton in return for sector-specific benefits in apparel exports.
This move could prove to be a game-changer for the industry,” said Prabhu Dhamodharan, convenor of the Indian Texpreneurs Federation.
Additionally, India has a structural advantage as textiles contribute only 2% to its GDP, compared to 11% for Bangladesh and 15% for Vietnam, allowing more room for expansion in the global market.
