Textile industry
US President Donald Trump has imposed a total tariff of 50 percent on India citing buying Russian oil. Along with this, he has also run a whip of his tariff on many countries of the world, due to which the US court itself has reprimanded Trump. However, due to tariffs on India, the country’s textile exports can fall from 9 to 10 percent. To compensate for this deficit, India will promote its trade with Britain. This increase will be possible due to the free trade agreement between India and Britain.
Europe’s market will also open for India in the coming times. Because there is talk about FTA between India and EU. If the matter is made between the two countries, then India will send its Texyl Export there. According to the report of CARAEGE Ratings, the FTA between India and Britain will prove to be excellent for India’s readymade garment (RMG) and home textile sector. This will open a market of about 23 billion dollars in Britain.
Impact on Indian textile market
India’s textile market export is currently enough to America. Indian companies get great profits on their goods in America. However, according to the report, the country may suffer about 9-10 percent loss from American tariff by 2026. Also, the PBildt margin of RMG and home-textile exporters can fall by 3-5 percent. The report also mentions how much the decline will be dependent on how Indian exporters are able to deal with their American customers about prices.
America’s market
America is the largest market for India’s Textile and Apparel. The US is the largest US market for this sector. If we talk about 2024, then in the last 4 years, there has been a export of 28-29 percent in America. Especially from India, products made from cotton are sent to America.