New Delhi: The impact of US tariffs on the textile sector has come under focus as the Government of India reviews evolving global trade developments and their implications.
The government is actively engaging with exporters, industry stakeholders, and Export Promotion Councils to assess the situation and respond effectively.
Changing tariff landscape
India and the United States announced a trade arrangement in early February 2026, followed by a joint statement outlining cooperation.
Subsequently, the US withdrew the 25% additional tariffs imposed on certain Indian exports. In addition, a US Supreme Court judgement February 2026 tariffs case invalidated reciprocal tariffs, removing further trade barriers.
However, new executive orders have introduced a 10% tariff on select products from multiple countries. Therefore, the government continues to closely monitor developments.
Textile exports show steady growth
Despite global uncertainties, India’s textile and apparel exports have remained resilient. Exports reached ₹2,68,951.5 crore between April 2025 and January 2026, reflecting a growth of 3.3%.
In Tamil Nadu, textile exports stood at ₹57,858.7 crore during the same period, also recording similar growth. Key districts, including Tirupur, have contributed significantly to this performance.
Government schemes boost competitiveness
To strengthen the textile sector, the government has introduced several initiatives aimed at improving infrastructure, innovation, and exports.
Key schemes include the PM Mega Integrated Textile Regions and Apparel Parks Scheme, which focuses on world-class infrastructure, and the Production Linked Incentive Scheme, which promotes large-scale manufacturing in textiles.
Additionally, the National Technical Textiles Mission supports research and development, while SAMARTH Scheme focuses on skill enhancement.
Export support measures
The government has also implemented financial and policy measures to enhance export competitiveness. These include the Rebate of State and Central Taxes and Levies Scheme and the Remission of Duties and Taxes on Exported Products Scheme.
Moreover, the Export Promotion Mission aims to support exporters, especially MSMEs, through financial and non-financial assistance.
The Reserve Bank of India has also introduced relief measures, including debt repayment moratoriums and extended export credit timelines.
Outlook for the textile sector
Overall, the impact of US tariffs on the textile sector remains manageable due to policy support and export growth. The government continues to engage with global partners and monitor trade developments.
With sustained policy backing and industry resilience, India’s textile sector is expected to maintain steady growth despite global trade challenges.
