Trade Deal with the US Likely to Provide Relief to the Textile Industry

05-Feb-2026 12:13 PM

Mumbai. The United States is one of the leading buyers of Indian textiles and garments, especially cotton products. Therefore, the implementation of a stable and favorable trade policy there could provide the Indian textile industry with an excellent opportunity to increase its exports.

A leading organization, the Cotton Association of India (CAI), on behalf of the entire Indian cotton industry and trade sector, welcomed the resolution of the tariff issue between India and the US, stating that it will benefit both countries.

The US has announced a reduction in customs duties on imports of Indian products to 18 percent, which is a positive and forward-looking step towards promoting bilateral trade.

This will help in further strengthening and making the bilateral trade relations between India and the US more mutually beneficial.

The normalization or acceleration of textile exports to the US market will increase the demand and consumption of cotton in Indian textile mills, leading to some improvement in prices, which will provide relief to cotton growers.

Due to weak domestic market prices for cotton, the government agency, the Cotton Corporation of India (CCI), has once again been forced to purchase a large quantity of this important fibrous industrial crop from farmers at the Minimum Support Price (MSP). Currently, a customs duty of 11 percent is levied on cotton imports.

Indian textile exporters will now be able to keep the prices of their products competitive in the US market, while the challenge will increase for other exporting countries, including Pakistan, Bangladesh, and China.