Articles | Magazine Articles

Weaving a New Opportunity After U.S. Tariff Imposition

Published: April 18, 2025

Author: TANVI_MUNJAL

Arvind Gaur

Current USA policy trade is a trade war and is shifting and reshaping the global textile trade. India is at a junction to define this moment. The decision by the United States to impose a 145% tariff on Chinese textile imports has disrupted a $20 billion market, creating an opening for Indian exporters to step in. For the next 90 days, a flat 10% tariff applies to imports from all other nations, including India, offering a narrow but significant opportunity window to capture market share, boost exports, and cement India’s role as a trusted global supplier. This is by far no ordinary situation, and it’s a race against time and other competitive suppliers like Bangladesh, Turkey, and Pakistan. This requires swift action, strategic focus, and collective effort to turn opportunity into success.

Is India ready for a $20 Billion Market vacuum?

The U.S. imported over $20 billion in textiles from China, including the area where India has strong investment and infrastructure:

Knitwear and apparel: $10 billion
Woven apparel: $7.8 billion
Home furnishings and bed linen: $1.9 billion
T-shirts: $585 million
Curtains, blankets, and other textiles: Significant volumes

Chinese-manufactured goods now attract a 145% tariff, and their costs have skyrocketed, making Indian textiles and apparel supply, which is taxed at just 10% for 90 days, competitive and an alternative for American retailers. American buyers, eager to fill supply gaps, are scanning for reliable partners, and India’s robust production capabilities make it a natural fit. From cotton T-shirts to polyester garments and bed linens, India can deliver the quality and scale U.S. retailers need at a fraction of the cost of Chinese imports.

Why India Stands Out?

Due to unique blends of capacity, capability, geography, and the present geopolitical situation, India’s textile and apparel sector is well-positioned to capitalise on the gap and opportunity created.

Competitive Complete Supply Chain: From Fibre to Fashion, i.e. cotton fields to garment, India’s vertically integrated ecosystem, i.e. fibre production, spinning, weaving, dyeing, and finishing. This flexibility allows quick changeovers and meets changing order preferences.
Affordable Production: Lower labour and manufacturing costs give India an edge in price-sensitive categories like woven, knitwear, T-shirts, and home textiles, appealing to cost-sensitive U.S. buyers.
Government Backing: Policies like the Production Linked Incentive (PLI) scheme, Technology Up Gradation Fund (TUF), and Mega Integrated Textile Region and Apparel (MITRA) parks are helping modernisation and capacity growth.
Global Trust: India is a proven exporter to the U.S., Europe, and the Middle East, with a reputation for meeting international quality and compliance standards.
Green Momentum: As sustainability gains traction, India’s shift toward organic cotton, water-saving techniques, and certifications like GOTS, Oeko-tex, OCS, GRS, Fair Trade, SA00, etc, aligns with the net zero and COPE Targets.
Stable Partnership: In a volatile world, India’s democratic governance and reliable trade relationships offer U.S. companies a dependable sourcing option.

These advantages position India not just to plug a temporary gap but to build ties with American brands seeking long-term alternatives to China, best known as China+.

The 90-Day Race: The Clock Is Moving

The 90-day timeline is a now-or-now moment instead of a never moment. With U.S. importers moving to replace Chinese suppliers under the China + strategy, Indian exporters have a chance to book orders for high-demand products like cotton apparel, polyester garments, and home textiles. To make the most of this situation, the industry must move with accurate planning and precision:

Ramp up Production: Factories need to scale up quickly, especially for items like T-shirts and bed linens, for which India already has a strong capacity. This means optimising existing facilities and adding shifts.
Connect with Buyers: Time is the key to building relationships, and it is short. Trade delegations, virtual pitches, and U.S. trade shows can showcase India’s capabilities to retailers in need of new partners.
Prioritise ESG Compliance: American buyers demand high standards for quality, labour practices, and environmental impact. Certifications and transparency will differentiate Indian exporters from others.
Speed up Logistics: India’s current logistic cost is 14 % of its GDP compared to 8% in China. Indian road transport Minister Mr Nitin Gadkari has set a target of bringing this cost down to 9 % by the end of this year. From factory floors to U.S. ports, seamless shipping is critical. Coordinating with logistics firms and customs officials can prevent costly delays.
Secure Funding: Growth requires cash for raw materials, wages, and equipment. Exporters should go for bank loans, government schemes, or trade financing to fuel expansion and working capital needs.

This 90-day period is a proving ground. Delivering on time and meeting expectations could turn one-off orders into multi-year contracts, establishing India as a key player in the US supply chains.

Hurdles to Clear

India’s textile sector faces several challenges that could slow its Pace: The path to success isn’t without obstacles.

Capacity Limits: Many factories, especially smaller ones, lack the machines or workers to handle a sudden surge in U.S. orders. Scaling up requires rapid investment.
Logistics Challenges: India’s ports and roads, though improving, can still clog under pressure. A spike in exports risks delays that could frustrate buyers.
Raw Material Risks: India imports some synthetic yarns, dyes, and trims, often from China. Price hikes or supply disruptions could squeeze production.
Competition: Bangladesh, Vietnam, Turkey, and Pakistan also enjoy the 10% tariff; few also have GSP status and are strong players in categories like synthetics. India must outshine them in terms of quality and reliability.
Visibility Gaps: Some U.S. buyers may not be fully aware of India’s modern capabilities. Aggressive marketing, trade shows, and buyers sellers’ active engagement is needed to shift perceptions and highlight strengths.

Overcoming these hurdles requires coordinated effort and teamwork. The government can ease the red tape process, boost port efficiency, and offer financial support, while exporters must sharpen operations and build buyer trust.

Beyond 90 Days and Building a Legacy for a Lifetime

The 90-day challenging window is an opening point, but the real prize goal is long-term dominance. To sustain momentum, India must plan for what comes next:

Prepare for Beyond 90 Days: Post-90-day tariffs are unclear. Whether the 10% rate continues or changes, exporters need flexible pricing and supply strategies to stay competitive.
Adopt and Embrace Technology: Automation, AI, and digital supply chains can cut costs, speed production, and ensure consistent quality, keeping India ahead of rivals.
Look beyond the U.S.: While the American market is key, India should strengthen ties with Europe, Japan, Australia, and emerging regions like Africa, Latin America, and the global south to spread this possibility.
Train the Future: A skilled workforce is vital. Vocational programs in modern textile techniques, design, and sustainability can prepare workers for global demands. Textile research institutes like Sasmira can play an important role.
Textile and Apparel Promotional Bodies: The Time is right to use the strength of all available textile and apparel bodies (TEXPROCIL, AEPC, STEPC, HEPC, EPCH, CITI, ITTA, etc.)
Champion Sustainability: Expanding eco-friendly practices—like organic fibres and clean energy—can make India a go-to for ethical sourcing and secure buyer loyalty.
Aim Higher: Basic textiles are a start, but technical textiles, fashion-forward apparel, and innovative fabrics offer bigger profits. Investment in design and R&D is essential.
Navigate Trade Shifts: Global trade is unpredictable. Strong diplomatic ties and diverse partnerships will help India weather future policy changes.

Where Growth Lies

India’s textile sector offers both immediate opportunity and longer-term potential:

Quick Window for Growth:

Knitwear: Casual wear and athleisure are ripe for growth, leveraging India’s cotton expertise.
Home Textiles: Towels, sheets, and curtains can scale fast with existing capacity.
Cotton Apparel: T-shirts and uniforms are an immediate possibility to fulfil U.S. demand.

Future:

Technical Textiles: Healthcare and industrial fabrics promise high margins with the right equipment.
Synthetic Apparel: Polyester garments need investment but hold strong potential.
Fashion Segments: Better design can elevate India into premium markets.

A United Push Forward

This $20 billion prospect should be treated as more than just a trade win—it’s a chance to redefine India’s global stature. Textile hubs like Tiruppur, Surat, Panipat, Ludhiana, and Bhilwara could drive and add millions of jobs and billions in revenue, showcasing India’s manufacturing strength.

The government must act by streamlining exports, upgrading ports, and securing trade deals. Industry needs to modernise factories, court buyers, and train workers. Together, these steps can turn a short-term edge into a permanent foothold.

Conclusion

The world is searching for new textile suppliers, and India has the skills, scale, and spirit to answer the call. This 90-day window is a chance to weave India into the heart of global trade, creating prosperity and pride. By moving fast and thinking big, India’s textile industry can launch a new chapter to become a leader.