India Eyes Tariff-Free Textile Trade as US Plans Reciprocal Duties

New Delhi, Mar 8 (KNN) As the United States prepares to impose reciprocal tariffs on imports starting April 2, India’s textile and apparel industry is pushing for a “zero for zero” tariff agreement.

This proposal aims to eliminate duties on most textile products while ensuring protection for strategic sectors.

The Confederation of Indian Textile Industry (CITI) views the US tariff move as an opportunity to boost Indian exports. “We are looking forward to this shift as the US seeks new trade partners,” said Chandrima Chatterjee, Secretary General of CITI.

The industry has communicated its proposal for zero-duty textile trade to the Indian government during recent consultations.

Currently, the US imposes tariffs ranging from 2.5 per cent to 7.4 per cent on Indian apparel, while India levies 5 per cent to 12 per cent duties on US imports.

According to the Apparel Export Promotion Council (AEPC), reduced tariffs could propel India’s textile and apparel exports to the US from USD 10.8 billion in 2024 to USD 16 billion within three years.

“India has only a 6 per cent share in US apparel imports. Even a 4 per cent increase could generate an additional Rs 25,000 crore,” said Prabhu Damodaran, Convenor of the Indian Texpreneurs Federation. India is currently the third-largest textile supplier to the US, trailing China and Vietnam.

With US imports from China declining at a 9.4 per cent CAGR over the past five years, India’s growing exports—up by 9.1 per cent annually—suggest a potential market shift.

Given China’s retaliatory tariffs on US cotton, India could capitalize by lowering duties on American cotton imports, reciprocating with preferential treatment for Indian apparel.

The US remains India’s top apparel export market, accounting for 35 per cent of shipments. In 2024, exports to the US grew 11.2 per cent to USD 5.2 billion, reinforcing India’s case for a trade-friendly tariff policy.

(KNN Bureau)

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}