India Targets 40 Nations to Boost Textile Exports Amid 50% US Tariffs

India is planning targeted outreach programs in 40 countries, including the UK, Japan, and South Korea, to boost textile exports following the US’s 50% tariff on Indian goods, an official said on Wednesday.

Other countries on the list include Germany, France, Italy, Spain, the Netherlands, Poland, Canada, Mexico, Russia, Belgium, Turkey, the United Arab Emirates, and Australia.

“In each of these 40 markets, we aim to adopt a focused approach, positioning India as a reliable supplier of high-quality, sustainable, and innovative textile products, with active involvement from Indian industry players, EPCs, and Indian missions in these countries,” the official added.

India currently exports to over 220 countries, but the focus on 40 key importing nations is seen as crucial for diversification.

These 40 countries account for more than $590 billion in textile and apparel imports, presenting significant opportunities for India to expand its market share, which currently hovers around 5-6%, the official said.

"Recognising this, the government is planning dedicated outreach programs in each of these 40 countries, targeting both traditional and emerging markets," the official said.

The 50% tariff on Indian goods entering the United States, which came into effect on August 27, is expected to affect exports worth over $48 billion.

The sectors likely to be most affected by the high import duties imposed by the Trump administration include textiles and clothing, gems and jewellery, shrimp, leather and footwear, animal products, chemicals, and electrical and mechanical machinery.

In 2024-25, India’s textile and apparel sector is estimated to be worth $179 billion, with a domestic market of $142 billion and exports totaling $37 billion.

Globally, the textile and apparel import market was valued at $800.77 billion in 2024. India, holding a 4.1% share of world trade, ranks as the sixth-largest exporter and maintains an export presence across 220 countries.

The official added that Export Promotion Councils (EPCs) will play a central role in India’s diversification strategy by conducting market mapping, identifying high-demand products, and connecting specialised production hubs—such as Surat, Panipat, Tirupur, and Bhadohi—to opportunities in the top 40 countries.

EPCs will also lead India’s participation in international exhibitions, trade fairs, and buyer-seller meets, while running sector-specific campaigns under the unified Brand India initiative.

Additionally, the councils will guide exporters on leveraging free trade agreements (FTAs), meeting sustainability standards, and obtaining necessary certifications.

“FTAs and negotiations with several of these countries will make Indian exports more competitive, and there is significant growth potential in these markets,” the official said.

Commenting on the steep tariffs, Mithileshwar Thakur, Secretary General of the Apparel Export Promotion Council (AEPC), said the textiles sector, with exports of $10.3 billion, is among the worst-affected, after gems and jewellery ($12 billion) and electrical and mechanical machinery (\$9 billion) in terms of exposure to the US market.

“The apparel industry had prepared for the 25% reciprocal tariff announced earlier by the US, and was ready to absorb part of the increase. However, the additional 25% tariff—raising the total reciprocal duty on Indian goods to 50%—has effectively pushed the Indian apparel industry out of the US market, creating a 30–31% tariff disadvantage compared to key competitors like Bangladesh, Vietnam, Sri Lanka, Cambodia, and Indonesia,” Thakur said.

He stated that the industry is seeking urgent fiscal support from the government to sustain its presence in the US market until more favourable terms of trade are restored through a bilateral trade agreement.

“This is crucial, as regaining lost ground and market share is extremely difficult once buyers shift to more cost-competitive locations. Meanwhile, we are intensifying efforts to diversify our markets and exploring opportunities under trade deals with the UK and EFTA countries to mitigate and contain the impact,” he added.

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