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Rajeev Gupta, Joint Managing Director, RSWM Limited<\/em><\/strong>, said the tariff reset gives India a clear pricing edge. \u201cThe sharp reduction from 50 per cent to 18 per cent provides India with a 2 per cent cost advantage over competitors such as Bangladesh and Vietnam, significantly strengthening global competitiveness,\u201d he said. Gupta noted that delayed US orders, which account for nearly 28 per cent of India\u2019s textile exports, are already seeing signs of revival. \u201cCombined with internal duty exemptions and a Budget that meaningfully strengthens domestic value chains, the timing is ideal to accelerate exports, support MSME employment and improve margins in the coming quarters,\u201d he added.<\/p>\n The India\u2013US tariff reset sharply improves India’s price competitiveness in the US market, triggering early signs of order revival and exporter confidence.
Offering a broader industry view, Dr Rajesh Bheda, Managing Director of consulting firm RBC<\/em><\/strong>, said the announcement has lifted exporter morale after months of pressure. \u201cThis is a much-needed and long-awaited relief for textile and apparel exporters, many of whom absorbed losses over the last six months to retain US customers,\u201d he said. However, he quickly added that clarity will emerge once the US executive order and fine print are released. Bheda said the industry has received three strong positive signals within days\u2014the India\u2013EU deal, Budget support for textiles, and now the India\u2013US trade agreement. He stressed that to fully capitalise on these opportunities, manufacturers must rapidly expand capacity, improve speed to market, adopt digital and smart manufacturing, enhance productivity and strengthen ESG compliance.<\/p>\n From a sustainability and brand perspective, Avani K Chandran of House of Ara<\/em><\/strong>\u00a0said the trade deal is particularly positive for value-added textiles. \u201cImproved market access will allow Indian brands and manufacturers to showcase craftsmanship globally, while encouraging stronger compliance, transparency and long-term trade partnerships,\u201d she said.<\/p>\n The agreement is also expected to unlock investments in large manufacturing ecosystems. Dharani Kanth Koganti, Director of Kakatiya Mega Textile Park (KMTP)<\/em><\/strong>, said the 18 per cent tariff, combined with the EU FTA, removes prolonged uncertainty for investors. \u201cThis is the ultimate unlock for the PM MITRA vision. While policy created capacity, this deal provides the global competitiveness needed to fill it,\u201d he said, adding that Telangana, as the first state with an operational PM MITRA ecosystem, stands to benefit immediately.<\/p>\n Textile producers echoed similar optimism. Gautam Ganeriwal, Executive Director, Sitaram Spinners Pvt Ltd<\/em><\/strong>, said lower US tariffs and efforts to address raw material competitiveness can create a win-win outcome. \u201cA more open and predictable trade environment will revive demand, improve supply chain confidence and support employment across the textile value chain,\u201d he said.<\/p>\n From the fabric segment, Suketu Shah, CEO, Vishal Fabrics Ltd<\/em><\/strong>, said the agreement restores India\u2019s standing in the US market. \u201cThe reduction of tariffs to 18 per cent makes India more competitive, especially in manufacturing. The deal opens opportunities for diversification and faster scale-up, though the impact will depend on implementation speed and cost management,\u201d he said.<\/p>\n
<\/p>\n Fibre2Fashion News Desk (KUL)<\/p>\n
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\nCombined with the EU deal and Budget support, it creates a rare alignment for export-led growth.
\nReal gains will hinge on rapid capacity expansion, productivity gains, and stronger ESG compliance.<\/p>\n