India Targets 40 Nations To Boost Textile Exports After US Tariff Blow

India has launched plans for outreach in 40 countries, including the UK, Japan, and South Korea, to boost textile exports. The move comes after Washington imposed a steep 50 per cent tariff on Indian goods.

Other target markets include Germany, France, Italy, Spain, the Netherlands, Poland, Canada, Mexico, Russia, Belgium, Turkiye, the UAE, and Australia.

Officials said India will position itself as a reliable supplier of sustainable and innovative textiles. Export Promotion Councils (EPCs) and Indian missions will play the lead role.

Currently, India exports to over 220 countries. However, the 40 selected nations account for more than $590 billion in textile and apparel imports. India’s share remains just 5-6 per cent.

Tariff Shock Hits Key Sectors

The new 50 per cent tariff on Indian goods entering the US took effect on 27 August. It threatens exports worth over $48 billion.

Textiles, gems and jewellery, shrimp, leather, footwear, animal products, chemicals, and machinery will bear the brunt.

Meanwhile, India’s textile and apparel sector in 2024-25 is valued at $179 billion. Of this, $142 billion comes from the domestic market and $37 billion from exports.

Globally, textile and apparel imports stood at $800.77 billion in 2024. With a 4.1 per cent share, India ranks sixth worldwide.

EPCs to Drive Diversification

Officials said EPCs will lead India’s diversification plan. They will map markets, identify high-demand products, and link clusters like Surat, Panipat, Tirupur, and Bhadohi to opportunities abroad.

Furthermore, EPCs will drive India’s participation in trade fairs, exhibitions, and buyer-seller meets under the Brand India banner. They will also advise exporters on FTAs, sustainability standards, and certifications.

Reacting to the tariff hike, AEPC Secretary General Mithileshwar Thakur said textiles worth $10.3 billion face a severe risk. He argued that the 50 per cent duty has priced Indian apparel out of the US market.

Competing nations such as Bangladesh, Vietnam, Sri Lanka, Cambodia, and Indonesia now enjoy a 30-31 per cent cost advantage.

Thakur urged the government to provide urgent fiscal relief. He warned that once buyers shift to rivals, regaining market share will be difficult.

Nevertheless, he said the industry is intensifying diversification efforts and pursuing trade deals with the UK and EFTA countries to reduce losses.