The Northern India Textile Mills’ Association (NITMA) formally welcomes the breakthrough trade agreement between India and the United States. The strategic reduction of US import tariffs on Indian textile and apparel products from 50% to 18% marks a decisive inflection point for the industry, ensuring the restoration of competitiveness in India’s largest overseas market.
Conveying the profound gratitude of the industry, Shri Sidharth Khanna, President of NITMA, hails the statesmanship of Hon’ble Prime Minister Shri Narendra Modi and Hon’ble Minister of Commerce & Industry Shri Piyush Goyal. Their unwavering commitment, alongside the cooperation of the United States leadership, has resulted in a landmark agreement that ensures long-term prosperity and global competitiveness for our industry .”..
Restoring Market Superiority
Since August 2025, the Indian textile sector has navigated a challenging landscape characterized by a 50% tariff wall, leading to squeezed margins and a temporary shift in global sourcing patterns. The new 18% tariff rate provides Indian exporters with a distinct 2% cost advantage over major regional competitors, such as Vietnam and Bangladesh, who currently face 20% tariffs, effectively repositioning India as the preferred sourcing partner for US brands and retailers.
Economic Revitalization and Employment
NITMA underscores that this agreement will immediately catalyze the domestic manufacturing ecosystem:
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Capacity Utilization: Factories that faced substantial production declines are now poised to return to full operational scale.
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Job Security: The deal provides a critical lifeline for millions of workers, securing existing jobs and creating a pathway for fresh employment, particularly in labor-intensive segments and MSMEs.
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Investment Unlock: The removal of trade uncertainty provides the “ultimate unlock” for large-scale manufacturing initiatives like the PM MITRA parks, encouraging both domestic and foreign direct investment (FDI).
As a concluding remark, Shri Sidharth Khanna highlighted that by securing preferential access to the US, UK, and European markets, India is now positioned as a stable, reliable, and highly competitive global textile hub & the ambitious $100 billion textile export target, which once appeared as a distant dream, has now transitioned into an achievable reality.
He also reaffirmed that NITMA remains committed to working alongside policymakers and exporters to translate this diplomatic success into sustained industrial prosperity.
