India is planning to boost its textile exports to the US as part of its strategy to capitalize on the ongoing trade tensions between the US and China. With US President Donald Trump escalating the trade war by imposing additional tariffs on Chinese imports, India sees an opportunity to expand its market share in textiles and apparel. The Indian government, through its Atmanirbhar Bharat initiative, is encouraging domestic manufacturers to increase production to meet rising demand.
The Ministry of Textiles is set to convene a key meeting with industry stakeholders to discuss measures to enhance India’s export capacity. A key focus will be on promoting Kasturi cotton, India’s finest cotton variety, to drive premium textile exports. The apparel industry is optimistic about a 10-15 percent increase in exports for the financial year 2026, driven by these efforts.
The trade war between the US and China, which includes a 10 percent additional duty on Chinese imports, is seen as a significant opportunity for Indian textile manufacturers to fill the gap. Global shifts in trade dynamics have opened new avenues for Indian exports, particularly in high-quality, cotton-based textiles.
In parallel, Commerce Minister Piyush Goyal is engaged in trade talks with US officials, signaling a continued effort to strengthen US-India trade relations. Despite Trump’s push for reciprocal tariffs on countries, including India, the two nations have maintained a strong trade partnership. In 2024, the US had a total goods trade volume of USD 129.2 billion with India. US imports from India amounted to USD 87.4 billion, while US exports to India totaled USD 41.8 billion, with a trade deficit of USD 45.7 billion.
As geopolitical and trade shifts continue to evolve, India is positioning itself to capture a larger share of the US textile market, leveraging its premium cotton products and increasing manufacturing capacity to meet global demand.
