India–US trade pact lifts outlook for textile & apparel exports



Following the removal of the additional 25 per cent US tariff and the prospect of a significantly lower reciprocal tariff of 18 per cent under the proposed India–US trade deal, India’s textile and apparel industry is optimistic that the coming decade could mark a defining phase for India in global textile and garment trade.

The Apparel Export Promotion Council (AEPC) has welcomed the revocation of the additional 25 per cent duty, which came into effect at 12:01 EST on February 7, 2026, pursuant to Executive Order 14239. The move follows the India–US joint statement on the trade agreement, which aims to enhance bilateral market access and strengthen supply chain cooperation.

India’s textile and apparel industry has welcomed the removal of the additional 25 per cent US tariff and the prospect of an 18 per cent reciprocal rate under the proposed India–US trade pact.
AEPC said the agreement will enhance market access, cut non-tariff barriers, and improve competitiveness.
The deal is expected to boost exports, generate jobs across MSMEs and support farmers.

“On behalf of the entire textile and apparel industry, we welcome the India–US joint statement on the trade deal and the withdrawal of the additional 25 per cent duty imposed earlier,” AEPC chairman Dr A Sakthivel said.

He expressed gratitude to Prime Minister Narendra Modi for his leadership and to Commerce and Industry Minister Piyush Goyal for his efforts in concluding what he described as a landmark agreement with the US.

According to AEPC, the agreement represents a historic milestone for India’s textile and apparel sector, opening opportunities across the entire value chain. It is expected to generate substantial employment, particularly for women and MSMEs, while also benefitting farmers in rural India, thereby supporting inclusive and sustainable growth.

The removal of tariffs and improved market access are expected to significantly enhance the global competitiveness of Indian textiles and apparel, positioning India as one of the most reliable and trusted sourcing destinations worldwide. The deal is also expected to address non-tariff barriers, reduce compliance burdens and procedural delays, and enable faster movement of goods into the US market.

“The coming decade is poised to be India’s decade in textile trade,” Dr Sakthivel said, adding that the agreement could usher in a golden era for the Indian textile and apparel industry.

Fibre2Fashion News Desk (KUL)



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