US Trade Deal Boosts Indian Textiles: Tariffs Cut to 18%, Exports to Revive

• A recent US trade deal has significantly reduced tariffs on Indian textile and apparel goods from 25% to 18%, easing pressure on exporters.
• The US market accounts for nearly a third of India's overseas textile sales, with shipments valued at $10.05 billion in FY24.
• The sector faced strain after the US imposed a 50% tariff in late August, leading to a 31.4% decline in US imports from India in November 2025.
• Indian exporters offered heavy discounts and diversified to other markets like the UK and Europe to retain buyers during the tariff uncertainty.
• The textile and apparel sector contributes approximately 2% to India's GDP, making the tariff reduction crucial for economic growth.

Why It Matters: The US trade deal's tariff reduction offers a crucial relief and revival opportunity for India's textile exporters.