Daijiworld Media Network – New Delhi

New Delhi, Jul 4: In what could emerge as a defining moment for India’s textile industry, all eyes are now set on the proposed trade pact between India and the United States—one that has the potential to recalibrate export economics for some of the country’s biggest textile players.

At the heart of the negotiations lies a steep 26% tariff that Indian textile exports currently attract when entering the US market, which accounts for nearly 28% of India’s total textile exports. If talks between the two countries yield a breakthrough—bringing this down to around 10%—it could deliver a much-needed boost to the sector.

This potential tariff cut would be a game-changer for export giants such as Welspun Living, Trident, and Himatsingka Seide, who have deep exposure to the US retail and home furnishing segments. The ripple effect could benefit lakhs of jobs linked to the sector and bolster India’s ambition to strengthen its position in the global value chain.

With neighbouring competitors like Vietnam already securing a reduction from 46% to 20% under their trade agreement with the US, the pressure on India to secure a favourable deal is mounting. Experts caution that failure to act swiftly may lead to erosion in market share to Bangladesh, Pakistan, and Vietnam—all of whom are positioning themselves aggressively in apparel and garment exports.

“If US tariffs on Indian goods are slashed to 10%, it could create a significant advantage not just for textiles but also for sectors like electronics, toys, and footwear,” said Sonal Varma, Managing Director and Chief Economist (India and Asia ex-Japan), Nomura.

A Jefferies report echoed the sentiment, stressing that tariff parity with competitors is more critical now than ever before for India’s trade resilience.

For companies like Himatsingka Seide—which earns 83% of its revenue from the US—the stakes are massive. Golakdas Exports, which derives about 77% of its turnover, roughly Rs 3,000 crore, from the American market, also stands to gain significantly.

As New Delhi and Washington inch closer to finalising trade terms, India’s textile exporters—and the millions of livelihoods tied to them—wait in cautious optimism. A well-negotiated deal could not only level the playing field but also set the stage for India to reclaim its dominance in the global textile arena.