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India’s New Textile Export Strategy: Focus on 40 Countries After US Tariffs

After the US imposed a 50% tariff on Indian goods, India is shifting its textile export focus to 40 countries including the UK, Japan, Germany, UAE, and Australia. The plan emphasizes sustainable textiles, handlooms, and high-tech fabrics to capture a $590 billion market.

India’s New Textile Export Strategy: Focus on 40 Countries After US Tariffs

India’s New Textile Export Strategy: Focus on 40 Countries After US Tariffs
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28 Aug 2025 12:48 PM IST

The Indian government has unveiled a new plan to safeguard and expand its textile industry after the United States imposed a steep 50% tariff on Indian goods. With the US being one of India’s largest export destinations, the move has shaken the garment sector. In response, India is turning its attention toward 40 alternative markets across Europe, Asia, and beyond.

India’s Global Outreach Plan

To offset the loss from the US market, India is preparing to host special trade promotion events in 40 countries, including the UK, Japan, South Korea, Germany, France, Italy, Spain, Netherlands, Poland, Canada, Mexico, Russia, Belgium, Turkey, UAE, and Australia.

Through these events, India aims to position itself as a reliable global supplier of high-quality, advanced textile products and build a strong supply chain network.

Customized Strategy for Each Market

According to senior officials, a country-specific export strategy will be designed. The initiative will be driven by the Export Promotion Councils (EPCs) and Indian missions abroad, focusing on direct engagement with local buyers, fashion brands, and retail chains.

Special emphasis will be placed on sustainable textiles, handlooms, organic fabrics, and high-tech fabrics, aligning with global demand for eco-friendly and innovative clothing.

$590 Billion Opportunity

Collectively, the targeted countries import textiles worth $590 billion annually. Yet, India’s current share is only 5–6%. By tapping into rising demand for sustainable and organic textiles, India hopes to expand its market presence and increase its global share significantly.

Beyond the US: Expanding Through FTAs

While the new US tariffs are expected to hit exports worth $48 billion, particularly affecting textiles, jewelry, leather, footwear, chemicals, and machinery, India sees this challenge as an opportunity.

With multiple free trade agreements (FTAs) under negotiation, countries in Europe and Asia could offer India larger and more stable markets. The government’s long-term vision is not just to increase exports, but also to strengthen partnerships and diversify markets for the future.

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