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Tariffs

India's Textile Industry to Meet Global Trade Headwinds with Resilience

Strategic Insights

— 1 min read

India's textile industry is preparing to face global trade challenges with renewed focus on export competitiveness and a commitment to achieve a target of $100 billion in exports by 2030. The Government of India has outlined a plan to constitute sub-committees to suggest structural reforms, identify strategies for new markets, and focus on product competitiveness in the textile sector. The industry is poised to meet the evolving global trade situation, including the recent announcement of reciprocal tariffs by the United States, with a confident and future-oriented strategy.

Key Takeaways:

  • India is the 6th largest exporter of textiles and apparel in the world, with a 4.1% share in calendar year 2024.
  • The textile and apparel sector contributed 8.63% to India's total merchandise exports in 2024-25, valued at $37.7 billion.
  • The USA remains India's largest export market, accounting for 28.97% of textile and apparel exports, but represents only 6% of the overall Indian textile industry.
  • India has signed 15 Free Trade Agreements (FTAs) with partner countries, whose combined textile import demand stands at $198.9 billion.
  • Four committees, comprising industry representatives, will submit time-bound recommendations on diversification, fiscal and ease of doing business measures, structural reforms, and enhancing cost competitiveness and innovation.
  • The Union Minister expressed confidence that India's textile industry will achieve a target of $100 billion in exports by 2030, despite global challenges.

Statistics:

  • India is the 6th largest exporter of textiles and apparel in the world.
  • The textile and apparel sector contributed 8.63% to India's total merchandise exports in 2024-25.
  • The USA accounts for 28.97% of India's textile and apparel exports.
  • India's textile value chain is valued at $179 billion (domestic $142 billion, exports $37 billion).
  • India has signed 15 Free Trade Agreements (FTAs) with partner countries, with a combined textile import demand of $198.9 billion.
  • The EU collectively imports textiles worth $268.8 billion, making it a significant market for Indian textile exporters.

Sources:

  • "India's Position in the Global Textile Trade" (Source: Government of India)
  • "Navigating Tariff Challenges and Enhancing Export Competitiveness" (Source: Ministry of Textiles, India)
  • "Union Minister of Textiles Meets Stakeholders" (Source: Press Information Bureau, India)
  • "Textile and Apparel Sector Contributes 8.63% to India's Merchandise Exports" (Source: Ministry of Commerce and Industry, India)
  • "India's Textile Industry to Achieve $100 Billion Exports by 2030" (Source: Ministry of Textiles, India)

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