India–US tariff cut to 18% boosts textile exports, says NITMA

NITMA hails India–US trade pact as a turning point for textiles.

The Northern India Textile Mills’ Association (NITMA) has welcomed the breakthrough trade agreement between India and the United States, calling it a decisive inflection point for the domestic textile and apparel industry. The sharp reduction in US import tariffs on Indian textile and apparel products from 50 per cent to 18 per cent is expected to restore India’s competitiveness in its largest overseas market.

Expressing the industry’s appreciation, Shri Sidharth Khanna, President, Northern India Textile Mills’ Association, said, “Their unwavering commitment, alongside the cooperation of the United States leadership, has resulted in a landmark agreement that ensures long-term prosperity and global competitiveness for our industry.” He credited the statesmanship of Hon’ble Prime Minister Shri Narendra Modi and Hon’ble Minister of Commerce & Industry Shri Piyush Goyal for steering the negotiations to a successful conclusion.

Since August 2025, the Indian textile sector had been operating under a steep 50 per cent tariff regime, which eroded margins and temporarily altered global sourcing trends. With the revised 18 per cent tariff, Indian exporters now enjoy a 2 per cent cost advantage over key competitors such as Vietnam and Bangladesh, which face 20 per cent duties. According to NITMA, this shift effectively repositions India as a preferred sourcing destination for US brands and retailers.

The association further noted that the agreement will catalyse domestic manufacturing. Capacity utilisation is expected to improve as factories scale back to full operations, while job security for millions of workers—particularly in labour-intensive segments and MSMEs—will receive a major boost. Additionally, the removal of trade uncertainty is likely to unlock fresh investments, including momentum for large-scale initiatives such as the PM MITRA parks and higher inflows of foreign direct investment.

Concluding, Shri Sidharth Khanna said that preferential access to major markets positions India as a stable and competitive global textile hub, adding that the ambitious $100 billion textile export target has now become an achievable reality. NITMA reaffirmed its commitment to work closely with policymakers and exporters to translate this diplomatic success into sustained industrial growth.