
Indian Textile Industry Benefits as Trump Tariffs Impact Global Markets
Thursday, 03 April 2025, 15:04 IST

President Donald Trump's move to impose tariffs on all imports to the United States (US) provides India's textile sector with an edge as its rivals such as Vietnam, Bangladesh and China will have to pay more in tariffs, experts opine.
It can be even more advantageous if trade talks result in a zero duty on cotton imports. One of the key drivers for Indian textile exports will be US buyer sentiments. "In the past, India, Bangladesh, and Vietnam were subjected to similar tariff levels on cotton apparel exports. But with the recent adjustments, India is now in a tariff advantage position compared to these rival countries on a comparative basis, which can enhance its competitiveness in the US market for apparel exports", says Prabhu Dhamodharan, convenor of Coimbatore-based Indian Texpreneurs Federation, an industry body.
Vietnamese garment exports will bear 46 percent tariff, Bangladeshi 37 percent, and Chinese 34 per cent, as Trump stated. India will bear a retaliation tax of 27 percent (the White House announced following Trump saying that it would be 26 percent).
Based on US statistics on textile shipment and bill of lading statistics for 2024, China's contribution to its textile imports was close to 30 percent at $36 billion. Vietnam followed with textile imports of $15.5 billion (13 percent contribution), and $9.7 billion by India (8 per cent contribution). Bangladesh previously had a bigger percentage in USA's textile imports but political unrest in 2024 saw its percentage falling to 6 per cent at $7.49 billion. Overall textile imports to the US in 2024 were $107.72 billion. Clothing imports, which account for most textile imports to the US, increased about 2 percent to $79 billion in 2024 from $77 billion in 2023.
"If India responds by cutting import duty on cotton from 11 per cent to 0 per cent, both countries will gain. Now the ball is in India's court", stated K Venkatachalam, chief advisor, Tamil Nadu Spinning Mills Association.
India's Apparel Export Promotion Council has already gone to the textiles ministry seeking a 'zero for zero' duty policy for textiles and apparel. It feels that the government must cut duties on textile articles to zero per cent, which would make the US impose the same tariff rate on Indian exports.
"India is poised to increase its market share in the US, led by this tariff advantage. Continued trade talks can further strengthen India's hand especially if India agrees to zero-duty import of cotton in exchange for sector-specific concessions in apparel exports. This initiative can be a game changer for the industry", Dhamodharan added.
Another benefit for India is that the textile industry only accounts for 2 per cent of its gross domestic product, whereas for its rivals Bangladesh and Vietnam, it is 11 percent and 15 percent.
It can be even more advantageous if trade talks result in a zero duty on cotton imports. One of the key drivers for Indian textile exports will be US buyer sentiments. "In the past, India, Bangladesh, and Vietnam were subjected to similar tariff levels on cotton apparel exports. But with the recent adjustments, India is now in a tariff advantage position compared to these rival countries on a comparative basis, which can enhance its competitiveness in the US market for apparel exports", says Prabhu Dhamodharan, convenor of Coimbatore-based Indian Texpreneurs Federation, an industry body.
Vietnamese garment exports will bear 46 percent tariff, Bangladeshi 37 percent, and Chinese 34 per cent, as Trump stated. India will bear a retaliation tax of 27 percent (the White House announced following Trump saying that it would be 26 percent).
Based on US statistics on textile shipment and bill of lading statistics for 2024, China's contribution to its textile imports was close to 30 percent at $36 billion. Vietnam followed with textile imports of $15.5 billion (13 percent contribution), and $9.7 billion by India (8 per cent contribution). Bangladesh previously had a bigger percentage in USA's textile imports but political unrest in 2024 saw its percentage falling to 6 per cent at $7.49 billion. Overall textile imports to the US in 2024 were $107.72 billion. Clothing imports, which account for most textile imports to the US, increased about 2 percent to $79 billion in 2024 from $77 billion in 2023.
"If India responds by cutting import duty on cotton from 11 per cent to 0 per cent, both countries will gain. Now the ball is in India's court", stated K Venkatachalam, chief advisor, Tamil Nadu Spinning Mills Association.
India's Apparel Export Promotion Council has already gone to the textiles ministry seeking a 'zero for zero' duty policy for textiles and apparel. It feels that the government must cut duties on textile articles to zero per cent, which would make the US impose the same tariff rate on Indian exports.
"India is poised to increase its market share in the US, led by this tariff advantage. Continued trade talks can further strengthen India's hand especially if India agrees to zero-duty import of cotton in exchange for sector-specific concessions in apparel exports. This initiative can be a game changer for the industry", Dhamodharan added.
Another benefit for India is that the textile industry only accounts for 2 per cent of its gross domestic product, whereas for its rivals Bangladesh and Vietnam, it is 11 percent and 15 percent.