CITI Welcomes US Tariff Cut To 18%, Sees Major Relief For Textile Exporters

(MENAFN- KNN India) New Delhi, Feb 9 (KNN) The Confederation of Indian Textile Industry (CITI) has welcomed the announcement of the US-India trade deal and the reduction of US tariffs on Indian goods to 18 percent, terming it a major relief for the country's textile and apparel exporters.

CITI Chairman Ashwin Chandran said the move will help Indian exporters regain competitiveness in their largest overseas market. "The announcements on the US-India trade deal and the reduction in the US tariff to 18 percent will inject fresh momentum into the textile and apparel sector, which has been patiently waiting for the last few months for a resolution on the tariffs issue," he said.

Expressing gratitude to both US President Donald Trump and Prime Minister Narendra Modi, Chandran described the agreement as a landmark development that opens a new chapter for India's textile and apparel industry.

Regaining Competitive Edge

The tariff reduction will help Indian exporters overcome the disadvantage faced in recent months compared to competitors such as Vietnam and Bangladesh. The US tariff on both Vietnam and Bangladesh currently stands at 20 percent.

"With the tariff cut, Indian exporters will be able to compete more effectively for market share in the US," Chandran said, adding that the move will allow factories to operate at full capacity and help restore employment levels in the labour-intensive sector.

Until the trade deal announcement, Indian goods had been subject to a steep 50 percent US tariff since August 2025, significantly impacting export volumes and profitability.

Impact on Exports and Margins

India exported nearly USD 11 billion worth of textile and apparel products to the US in FY 2024–25, accounting for about 28 percent of its total exports of these products.

Following the imposition of the 50 percent tariff effective August 27, 2025, several exporters were forced to offer deep discounts and absorb part of the import costs to retain US buyers, putting severe pressure on margins and raising concerns over potential job losses.

According to CITI's analysis of data from the US Office of Textiles and Apparel (OTEXA), US imports of textiles and apparel from India declined 31.4 percent in November 2025 compared to November 2024, reflecting the impact of elevated tariffs.

Industry stakeholders now expect the tariff relief to stabilise export flows and revive growth prospects in the sector.

(KNN Bureau)

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