NITMA Applauds India–US Trade Pact as Tariff Cut Strengthens Export Competitiveness

The Northern India Textile Mills’ Association (NITMA) has welcomed the newly concluded trade agreement between India and the United States, which reduces US import duties on Indian textile and apparel products from 50% to 18%. The revised tariff structure is expected to restore India’s cost competitiveness in its largest export market and stabilise trade flows affected over recent months.

Expressing the industry’s appreciation, Shri Sidharth Khanna, President of NITMA, acknowledged the role of national leadership and bilateral cooperation in achieving the agreement. He stated,
“The unwavering commitment of Hon’ble Prime Minister Shri Narendra Modi and Hon’ble Minister of Commerce & Industry Shri Piyush Goyal, along with the cooperation of the United States leadership, has resulted in a landmark agreement that ensures long-term prosperity and global competitiveness for our industry.”

Since August 2025, Indian textile exporters have faced reduced margins due to a 50% tariff barrier, leading to shifts in sourcing patterns. With the new 18% rate, Indian products will enjoy a cost advantage of around 2% over competitors such as Vietnam and Bangladesh, which continue to face duties of approximately 20%. This adjustment is expected to reposition India as a preferred sourcing destination for US buyers.

NITMA indicated that the agreement could have an immediate impact on domestic manufacturing activity. Production facilities that experienced lower utilisation levels are expected to scale up operations, while employment stability may improve, particularly in labour-intensive segments and MSMEs. The association also noted that reduced trade uncertainty could support fresh investments, including large-scale initiatives such as PM MITRA parks, and attract both domestic and foreign capital.

In his concluding remarks, Shri Sidharth Khanna observed that preferential access to the US, UK and European markets strengthens India’s standing as a reliable global textile supplier. He added that the country’s long-term textile export target of USD 100 billion now appears increasingly attainable.
He further reiterated that NITMA would continue working with policymakers and exporters to convert the agreement’s potential into sustained industrial growth.