With the recent victory of Donald Trump in the U.S. presidential election, the chemicals and textile industries in Gujarat are poised for significant growth in exports to the United States. Industry experts predict that the Trump administration will focus on reducing imports from China, which could create substantial opportunities for Indian exporters.
Data from the Chemicals and Allied Products Export Promotion Council (Chemexcil) reveals that India’s chemical exports to the U.S., which is the largest buyer of Indian chemicals, totalled approximately $2.86 billion in 2023-24. This figure represents a notable 26% decline from $3.85 billion in 2022-23. Despite concerns regarding potential increased duties on Indian products under Trump’s “America First” policy, industry leaders remain optimistic about India’s competitive advantage over China.
Ankit Patel, chairman of Chemexcil’s northern region, emphasised Gujarat’s critical role in this sector, noting that the state accounts for around 70% of India’s dyes manufacturing. He stated, “The U.S. is our biggest market, and we anticipate that the Trump administration will limit imports from China, which would greatly benefit Gujarat’s chemicals industry.” Patel also expressed hope for enhanced technology transfers from U.S. companies, which would further integrate India into the global supply chain.
Additionally, a director from a prominent chemical manufacturing firm highlighted expected disruptions in global supply chains over the next few years. As the Trump administration is likely to impose higher tariff restrictions on Chinese goods, India’s share in global trade could increase significantly. The textile sector is also gearing up for increased sales of home textiles to American consumers. Rahul Shah, co-chairman of the Textile Taskforce at the Gujarat Chamber of Commerce and Industry (GCCI), remarked, “Trump’s win will undoubtedly benefit Indian textile exports, especially as many U.S. companies consider establishing operations in India to circumvent reliance on China.”
Furthermore, an exporter noted that the strengthening of the U.S. dollar following Trump’s victory would enhance India’s competitiveness in global markets. This shift could lead to a notable increase in India’s share within both the chemicals and textiles sectors globally.
In summary, Gujarat’s chemicals and textile industries are strategically positioned to capitalise on changing trade dynamics under the Trump administration. With anticipated reductions in Chinese imports and a favourable exchange rate bolstering competitiveness, Indian exporters are optimistic about expanding their market presence in the United States in the coming years.
