US reciprocal tariff: Outreach in 40 nations to ease textile sector stress

These markets, spread across North America, Europe, Asia, Africa, Latin America, and Oceania, together account for nearly three-fourths of global demand for textiles and apparel.

NEW DELHI: With textiles emerging as the worst-hit sector under the US's reciprocal tariff regime, the government is moving in "war mode" to cushion the blow to the industry that employs over 45 million people.

Government sources told this newspaper that 40 key importing countries have been identified as part of efforts to diversify India's textile exports. These markets, spread across North America, Europe, Asia, Africa, Latin America, and Oceania, together account for nearly three-fourths of global demand for textiles and apparel.

"Dedicated outreach programmes are being designed to expand India's modest 5-6% market share in these economies, with particular emphasis on apparel, home textiles, technical textiles, and handicrafts," a government source said. The diversification exercise began a few months ago, and exports to these countries have already shown an uptick.

According to the Directorate General of Commercial Intelligence & Statistics (DGCIS), textile exports touched $3.10 billion in July 2025, a 5.37% rise year-on-year. Between April and July 2025, cumulative exports stood at $12.18 billion, up 3.87% over the same period last year.

Special focus is being placed on Free Trade Agreements (FTAs) with partner nations, including the recently signed India–UK Comprehensive Economic and Trade Agreement (CETA). Export Promotion Councils, in coordination with Indian missions abroad, will spearhead targeted promotion drives to position India as a reliable source of quality, sustainable, and innovative textiles while reducing overdependence on a handful of traditional markets, officials said.

The US, India's largest textile export market, accounted for $10.8 billion or 35% of shipments last year. But with apparel exports now facing a 63.9% duty, Indian exporters are at a 30-35% price disadvantage compared to competitors such as Bangladesh, Vietnam, Mexico, and Central American nations. Industry insiders have warned that if the tariffs persist, the apparel sector alone could witness to 15-20 lakh job cuts.

To counter this, four industry-led committees have been formed to recommend time-bound measures covering fiscal, banking and credit support, structural reforms in the value chain, and cost competitiveness through innovation.

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