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US Slashes Import Duty on Indian Textiles to 18%, Boosting Exports

The US government has significantly reduced import duties on Indian textile products from 50% to 18%, a move expected to dramatically boost exports. This decision places Indian exporters in a stronger competitive position against neighboring countries in the crucial US market. Key textile hubs in Tamil Nadu like Tiruppur, Karur, and Erode are poised for substantial growth and increased employment. The agreement, facilitated by leaders from both nations, is seen as a landmark deal that will revitalize the Indian textile industry.

Key Points: US Cuts Duty on Indian Textiles to 18%, Export Boom Expected

  • US duty cut from 50% to 18%
  • Major boost for Tamil Nadu textile hubs
  • Expected job creation and sector growth
  • Part of broader US-India trade deal
3 min read

Textile export likely to boom as US reduces import duty to 18 per cent on Indian textiles

US reduces import duty on Indian textiles from 50% to 18%, promising major export growth, job creation, and competitive edge in the US market.

"This reduction in tariff will ensure our textile and apparel exporters are once again in a position to compete effectively in the US market - Ashwin Chandran, CITI"

New Delhi, February 3

The decision of the US government to reduce the import duty on Indian textile products from 50 per cent to 18 per cent will provide a significant boost to Indian textile exporters. As the import duty imposed on India is lower than that levied on the neighbouring countries, exports of the country's textile products to the United States are expected to increase manifold in the coming days.

According to a press release, this development will strongly benefit textile exporters in Tiruppur, Karur, and Erode, as well as the OE mills and spinning mills that supply yarn to them, enabling substantial growth across the sector.

The reduction in the US import duties, along with forthcoming duty-free trade agreements with the United Kingdom and European countries, will drive remarkable growth in the Indian textile industry. As a result, employment opportunities in the textile sector will multiply significantly.

"On behalf of OSMA, we express our heartfelt gratitude to Prime Minister Narendra Modi, Union Minister for Commerce and Industry Piyush Goyal, Defence Minister Rajnath Singh, Union Finance Minister Nirmala Sitharaman, and Tamil Nadu Chief Minister MK Stalin, for facilitating this historic and landmark agreement that will transform the Indian textile sector," said G Arulmozhi, President, OSMA.

Earlier, the Confederation of Indian Textile Industry (CITI), a key textile organisation, welcomed the reduction in the US tariff on Indian goods to 18 per cent. CITI Chairman Ashwin Chandran said that the reduction in tariff will ensure India's textile and apparel exporters are once again in a position to compete effectively in the US market, the single-largest market for India's textile and apparel exports.

"The Confederation of Indian Textile Industry (CITI) heartily welcomes the announcement of the trade deal between the US and India and the reduction in the US tariff on Indian goods to 18 per cent. CITI would like to express its sincere gratitude to both the US President Donald Trump and Indian Prime Minister Narendra Modi for this trade deal," he said.

"This reduction in tariff will ensure our textile and apparel exporters are once again in a position to compete effectively in the US market, the single-largest market for India's textile and apparel exports. This deal will also ensure that factories can run at full steam once more and job creation can get back to previous levels," Chandran added.

PM Modi on Monday said that it was wonderful to speak with his "dear friend President Trump" and expressed delight that Made in India products will now have a reduced tariff of 18 per cent.

"Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18 per cent. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement," PM Modi said in a post on X.

The Prime Minister said that when two large economies and the world's largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation.

"President Trump's leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace. I look forward to working closely with him to take our partnership to unprecedented heights," PM Modi said.

The US government had first imposed 25 per cent tariffs on India and later increased them to 50 per cent, citing India's import of Russian oil.

President Trump on Monday said he and PM Modi "have agreed to a Trade Deal" between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25 per cent to 18 per cent.

- ANI

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Reader Comments

P
Priya S
While this is a positive step, I hope the benefits actually reach the small-scale weavers and artisans, not just the big mills and exporters. The government must ensure policies support the entire supply chain, from yarn to finished garment.
A
Ashwin V
Great diplomatic work! Having a lower duty than our neighbouring countries gives us a huge competitive edge in the US market. This is exactly what 'Make in India' needed – a tangible boost for exports. Kudos to the negotiation teams.
S
Sarah B
As someone who follows global trade, this is a smart move. The US gets reliable, high-quality textiles, and India gets a major market access boost. Win-win. The mention of future deals with the UK and EU is even more promising.
R
Rohit P
My only request: please don't let this become a political trophy. The focus should be on the weavers, the factory workers, and the SME owners. Let's track the actual employment numbers and wage growth in the sector over the next year. That's the real success metric.
K
Kavya N
This is a relief! The previous 50% duty was crippling. Our family business in home textiles exports had almost halted shipments. Now we can plan again. Hope the procedures are simplified too. Jai Hind!

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