India–US Tariff Resolution Expected to Boost Cotton and Textile Trade: CAI

The Cotton Association of India (CAI) has welcomed the resolution of the tariff issue between India and the United States, under which import duties on Indian textile products have been reduced to 18 per cent. The association said the move is expected to contribute positively to bilateral trade and create a more stable framework for long-term cooperation between the two countries.

The United States continues to be among India’s key trading partners in the textile sector. CAI noted that predictable and transparent trade policies are essential for sustained competitiveness and for encouraging deeper engagement between Indian and US textile businesses.

The reduction in US import tariffs on Indian goods — from levels that earlier reached up to 50 per cent to a uniform rate of 18 per cent — is expected to lower cost pressures and improve market access. According to the association, the change is likely to stimulate demand for Indian textile products and support improved capacity utilisation across the value chain.

The benefits are expected to extend across the cotton and textile ecosystem, including farmers, ginning and pressing units, textile manufacturers, and exporters of yarn, fabrics and home furnishing products.

Vinay N. Kotak, President, Cotton Association of India, said that the tariff resolution represents a positive step for trade relations and is expected to strengthen the position of Indian cotton and textile products in the US market.