The US new 100 per cent tariffs – to be imposed on countries buying Russian oil – under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 have introduced another layer of uncertainty for global trade, with potential implications for India’s textile and apparel (T&A) industry. The US remains India’s largest export market for T&A, and any additional tariff burden could influence the competitiveness of Indian suppliers in this critical market.
For an industry largely driven by MSMEs, the impact of higher tariffs could be significant. Additional duties may affect pricing competitiveness, especially at a time when manufacturers are already managing challenges related to input costs, geopolitical disruptions and evolving global sourcing patterns. However, the extent of the impact will depend on how trade negotiations progress and how businesses adapt their market strategies.
The Confederation of Indian Textile Industry (CITI) has suggested the need for a balanced and equitable trade framework between India and the US to ensure that exporters remain competitive. While India’s recently signed and upcoming Free Trade Agreements, including the India-UK Comprehensive Economic and Trade Agreement and the proposed India-EU agreement, are expected to open new opportunities, these markets will require time for exporters to fully leverage their potential.
The current situation needs to be viewed against the backdrop of India’s recent export performance. According to available trade data, India’s textile exports showed resilience in August 2026, increasing by 16.1 per cent year-on-year to Rs 297.76 billion compared with Rs 256.56 billion in August 2025. During April-August 2026, textile exports reached Rs 1.43 trillion, registering a growth of 10.3 per cent over the previous year.
However, broader T&A export numbers present a more nuanced picture. In US dollar terms, overall T&A exports increased by 6.39 per cent in August, supported by textile exports rising 13.03 per cent, while apparel exports declined by 2.74 per cent. During April-August 2026, textile exports increased by 6.94 per cent, but apparel exports declined by 9.10 per cent, resulting in a marginal 0.24 per cent decline in cumulative T&A exports compared with the previous year.
Tariff-related challenges are not new for India’s textile sector. In FY26, apparel exports remained broadly flat, declining around 1.4 per cent as elevated US tariffs affected order flows before conditions gradually stabilised. Yet, several textile companies continued their growth journey by diversifying export markets, expanding product portfolios and investing in technology, efficiency and value-added products.
This resilience and transformation form the foundation of ITJ’s Top 50 Indian Textile Companies special in this edition. The annual initiative goes beyond financial performance to highlight companies demonstrating innovation, operational excellence, strategic growth and adaptability in a changing global environment. The featured organisations represent the evolving capabilities of India’s textile ecosystem and the industry’s ambition to become a globally competitive, sustainable and future-ready manufacturing hub.
While global trade dynamics may continue to shift, India’s textile sector has repeatedly demonstrated its ability to adapt, evolve and create new pathways for growth. The journey ahead will require resilience, collaboration and a sharper focus on building long-term global competitiveness.