This post was originally published on The Economic Times
India’s textile and apparel industry is waiting with bated breath for clarity regarding trade following US President Donald Trump’s announcement of reciprocal tariffs, further complicated by a subsequent 90-day pause that heightens the uncertainty.
The textile and apparel industry is a significant contributor to India’s economy, contributing 2.3% to the country’s gross domestic product (GDP), 13% to industrial production and 12% to exports. The US and the European Union (EU) are the major destinations for India’s textile and apparel exports, accounting for a 47% share in India’s exports, as per a PIB release.
An in-depth look at the numbers tells the facts on the ground. India exported textile items worth $34.4 billion in 2023-24, with apparel comprising 42% of the export basket, followed by raw materials/semi-finished materials at 34% and finished non-apparel goods at 30%. In fact, the US is the largest buyer of India’s textiles, accounting for nearly 28% or $10 billion.
In this context, what do US President Donald Trump’s reciprocal tariffs of 26% imply for the textile sector, even though he announced
— Read the rest of this post, which was originally published on The Economic Times.
