India’s textile and apparel industry stands to benefit from the Trump administration’s newly imposed tariffs on China, Mexico, and Canada. As global brands seek alternative suppliers due to the tariffs, India is positioned to capture a larger share of the U.S. market, which is the world’s largest textile importer.
China, which had been the leading supplier of textiles and apparel to the U.S. between 2013 and 2023, has seen its market share shrink due to rising procurement costs and concerns over labor practices. The tariffs, which include a 10% duty on Chinese imports and a 25% duty on imports from Mexico and Canada, create opportunities for countries like Vietnam, Bangladesh, and especially India to fill the gap.
India’s growing presence in the U.S. market is already evident. In 2024, India’s market share in U.S. cotton sheet imports increased to 61.3%, and its share in total apparel and cotton apparel also rose. Analysts expect this trend to continue as global brands increasingly diversify their sourcing strategies to reduce reliance on China and other tariff-affected regions. This shift could lead to significant growth for India’s textile and garment exports in the coming years.
