The India–US trade deal sparks a revival in textile and leather export volumes, boosting demand, capacity utilization, and trade confidence.
India’s textile, apparel and leather exporters are expecting a sustained recovery in orders from the US following tariff reductions under the proposed India–US trade deal. Industry representatives said the move will restore competitiveness, improve margins and revive export volumes that had come under pressure over the past year.
Textile and apparel exporters said global brands are likely to increase sourcing from India, as the country will now enjoy one of the lowest tariff regimes among major Asian manufacturing hubs. This gives India a marginal edge over competitors such as Bangladesh, Sri Lanka, Vietnam and China. The tariff relief is expected to create a level playing field, especially for small and medium exporters in clusters like Surat, Gurugram and Tirupur.
Prabhu Dhamodharan, convenor of the Indian Texpreneurs Federation, said sourcing interest from the US is rising and exports are likely to improve steadily. He said apparel and home textile exports could witness month-on-month double-digit growth from FY 2026–27, pushing the monthly apparel export run rate to $1.5–1.6 billion from the current $1.3 billion. A. Sakthivel, chairman of the Apparel Export Promotion Council, said improved trade terms would significantly enhance the competitiveness of Indian apparel products in the US market.
The leather sector termed the US decision to reduce tariffs to 18 per cent a “double dhamaka”, coming close on the heels of India’s strategic trade deal with the European Union. Israr Ahmed, former vice-president of the Federation of Indian Export Organizations (FIEO) and managing director of the Farida Group, said exporters had been absorbing the impact of higher tariffs by offering discounts of 20–30 per cent.
“With US tariffs on Indian goods now reduced to 18 per cent lower than those faced by key competitors such as Bangladesh and Vietnam these heavy discounts are no longer necessary,” he said, adding that this would help restore pricing power and margins.
Rafiq Ahmed, chairman of Kothari Industrial Corporation, said competition in the US market had intensified over the past year but expressed confidence that long-standing relationships would help Indian exporters regain lost ground. “Orders from the US, which had reduced over the past year, will start flowing again,” he said. Yavar Dhala, vice-president of the Indian Shoe Federation and CEO of Infinite Leather, said India’s share of leather exports to the US could rise from around 22 per cent to nearly 30 per cent this year. He added that factories operating fewer days due to high tariffs could return to a six-day work week.