India plans outreach in 40 nations to boost textiles exports amid 50% US tariffs

The US, India’s largest textile export market, accounted for $10.8 billion or 35% of shipments last year.

Hours after the US' steep 50 per cent tariff on Indian products came into effect, New Delhi has chalked out a dedicated outreach programme in 40 countries, to promote textile exports -- a sector that has taken a massive hit due to the increased tariff measures, news agency PTI reported citing an official.

key target markets include Germany, UK, Japan, South Korea France, Italy, Spain, the Netherlands, Poland, Canada, Mexico, Russia, Belgium, Turkiye, the United Arab Emirates and Australia. The move is necessitated as textiles --industry that employs over 45 million people, emerged as the worst-hit sector under the US’s reciprocal tariff regime,

“In each of these 40 markets, this is proposed to pursue a targeted approach, positioning itself as a reliable supplier of quality, sustainable, and innovative textile products with the lead role of the Indian industry, including EPCs and Indian Missions in these countries," the above publication reported quoting the same official.

According to the Directorate General of Commercial Intelligence & Statistics (DGCIS), textile exports touched $3.10 billion in July 2025, a 5.37% rise year-on-year. Between April and July 2025, cumulative exports stood at $12.18 billion, up 3.87% over the same period last year.

India currently exports to more than 220 countries but the 40 nations identified “hold the real key to diversification", the official noted. Together, they represent more than USD 590 billion in textile and apparel imports while India’s share remains only 5–6 per cent.

The US, India’s largest textile export market, accounted for $10.8 billion or 35% of shipments last year. But with apparel exports now facing a 63.9% duty, Indian exporters are at a 30-35% price disadvantage compared to competitors such as Bangladesh, Vietnam, Mexico, and Central American nations. Industry insiders have warned that if the tariffs persist, the apparel sector alone could witness to 15-20 lakh job cuts.

The new US tariff, which came into effect on 27 August, is expected to hit Indian exports worth more than USD 48 billion. Sectors affected include textiles and clothing, gems and jewellery, shrimp, leather and footwear, animal products, chemicals and electrical and mechanical machinery.