Vinay N Kotak, President of the Cotton Association of India (CAI), said the resolution of the long-pending tariff issue marks a positive and forward-looking development for India–US trade relations. He emphasised that the United States remains one of India’s most important textile markets and that predictable trade policies are essential for long-term planning and competitiveness. According to CAI, the reduction in tariffs from as high as 50 per cent to a uniform 18 per cent will ease cost pressures, improve market access and boost demand, benefiting the entire cotton and textile value chain, from farmers and ginning units to manufacturers and exporters of textiles and home furnishings.
The US tariff cut to 18 per cent is seen as a structural boost for India’s textile exports, improving cost competitiveness and market access.
Industry bodies expect benefits to cascade across the cotton-to-garment value chain, supporting demand revival and utilisation.
Design-led brands see scope to reinvest in craftsmanship and positioning.
Design-focused Indian brands have also welcomed the move. Puneet Gupta, Founder of Puneet Gupta Crafted Fine Goods, noted that the tariff reduction to 18 per cent significantly improves cost competitiveness in the US market. He said it allows design-led labels to invest more confidently in craftsmanship, materials and artisan skills, rather than absorbing high export duties, while helping reposition Indian craftsmanship globally as contemporary, design-driven luxury.
Karn Malhotra, Founder of KM Studios, said the reduced 18 per cent tariff gives India a clear competitive edge over regional peers. He added that the move strengthens India’s standing as a global fashion sourcing hub, encourages exports and improves access to high-quality professional resources, ultimately raising design capabilities, production standards and the industry’s overall global competitiveness.
Fibre2Fashion News Desk (KUL)
