India’s textile sector at an inflection point as global tariff barriers ease; Arvind Fashion, Raymond Lifestyle top buys
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India’s textile industry is entering a decisive phase as recent tariff relaxations by the US sharply improve its global competitiveness and reset sectoral economics. The immediate reduction in US tariffs on Indian textile goods from 50% to 18% has brought long-awaited relief to an industry that had been grappling with margin compression, regulatory costs, and weakening demand—particularly in home textiles, where the market had declined by around 4% and smaller players were nearing shutdown. The US remains India’s largest textile consumption market, accounting for nearly 28–29% of exports. Historically, Indian exporters were excluded from free trade agreement (FTA) benefits, facing structural disadvantages relative to peers. The abrupt tariff cut signals a broader shift in global trade dynamics, with protectionist measures giving way to renewed acceptance of globalization. Over time, proposed FTAs with the US, UK, and EU could make 70–75% ...