Potential US Tariffs Could Pressure India's Textile, Apparel Exports: CITI

(MENAFN- KNN India) New Delhi, Sep 21 (KNN) Potential additional US tariffs following the signing of the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 could put significant pressure on India's textile and apparel exports, with industry body Confederation of Indian Textile Industry (CITI) urging the government to engage urgently with Washington.

The US is India's largest market for textile and apparel exports, making the sector particularly exposed to any additional tariff burden, CITI said.

MSME Exporters Face Margin Pressure

CITI Chairman Ashwin Chandran said additional tariffs would be difficult for the MSME-dominated textile and apparel sector to absorb, particularly as exporters are already facing pressure from multiple factors, including continued disruptions in West Asia.

He urged the government to engage closely with the US to ensure Indian exporters are not placed at a competitive disadvantage.

Chandran also called for a fair and balanced India-US bilateral trade agreement, saying an agreement was important for providing greater predictability to exporters.

Apparel Exports Remain Under Pressure

India's overall textile and apparel exports increased 6.39 per cent in US dollar terms in August 2026 from a year earlier. Textile exports rose 13.03 per cent, while apparel exports declined 2.74 per cent.

During April-August 2026, textile exports grew 6.94 per cent, whereas apparel exports fell 9.10 per cent. Overall textile and apparel exports were marginally lower by 0.24 per cent year-on-year during the period.

CITI said India's free trade agreements could open additional markets, but gains would take time to materialise and would not substitute for the importance of the US market for the sector.

The industry body said a predictable trade framework with the US could support technology partnerships, supply-chain resilience and greater value-chain integration while strengthening the long-term competitiveness of textile and apparel producers in both countries.

(KNN Bureau)

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