15% rise predicted for textile exports as US tariff cut aids Indian powerloom recovery

With the US rolling back import duties to 18% under a newly announced trade deal, India’s exports of garments and textile products are expected to rebound, industry sources said. Exports of ready-made cotton garments, terry towels and man-made fibre products are projected to rise by 10–15%, partially offsetting losses incurred during the recent tariff war.

Export recovery after tariff war

The United States announced the trade deal two days ago, easing import duties that had earlier been raised sharply. During the tariff war, the US had imposed a 50% duty on imports from India, leading to a decline of 25–30% in Indian textile and garment exports, according to industry estimates.

With duties now reduced, exporters expect improved price competitiveness and a recovery in volumes, particularly in value-added textile segments.

Powerloom sector seen as key beneficiary

The powerloom sector is expected to benefit significantly from the agreement. Manufacturers associated with the sector are likely to gain access to a much larger market, with overall textile exports estimated to increase by around ₹5,000 crore as a result of the deal.

Sources from the Powerloom Development and Export Promotion Council (PDEXCIL), a national-level textile body, said the lower US import duties would allow Indian exporters to sell products at more competitive prices compared to suppliers from Bangladesh, Sri Lanka, Indonesia and Vietnam. As a result, sales of Indian textile products in the US market could rise by 10–15%.

Gains for small units and textile clusters

According to PDEXCIL sources, small and medium-sized units are expected to significantly expand exports of made-ups such as towels and other textile items. The trade deal is expected to alter the conditions created by the tariff war, with exports projected to rise instead of decline.

Industry sources said the agreement would support domestic manufacturing, give a boost to “Make in India”, and improve global market access for Indian powerloom products. Exports of cotton, synthetic and blended yarn products are also expected to grow, benefiting major textile clusters such as Surat and Mumbai.

Budget measures reinforce export push

The export outlook has also been supported by measures announced in the Union Budget presented by Finance Minister Nirmala Sitharaman on Sunday. The budget outlined steps to boost exports of products made from man-made fibres, which are considered key raw materials for industries producing safety equipment, and to promote self-reliance in the silk, wool and man-made fibre sectors.

In addition, a comprehensive national scheme for handlooms and handicrafts has been announced to empower weavers and artisans. Industry sources said the initiative would help strengthen the value chain of the powerloom sector. Plans to promote khadi as a global brand and increase its sales were also outlined in the budget.

₹5,000 crore export increase projected

Taken together, the trade deal and recent policy measures are expected to raise India’s textile product exports by approximately ₹5,000 crore, easing pressure on the sector after a prolonged period of uncertainty.