US Tariffs: CITI Warns Indian Textile Sector Could Become Uncompetitive
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CITI has warned that additional US tariffs of up to 100% on countries buying Russian oil could make Indian textile and apparel exports uncompetitive in the US.
The Confederation of Indian Textile Industry (CITI) has warned that additional US tariffs could put pressure on India’s textile and apparel exports, with the US being the sector’s largest export market.
The concern follows the approval of new 100% tariffs on countries buying Russian oil under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, signed by US President Donald Trump.
Why Is CITI Worried About The New US Tariffs?
CITI Chairman Ashwin Chandran said additional tariffs would be difficult for India’s textile and apparel industry to absorb, particularly as the sector is dominated by micro, small and medium enterprises (MSMEs).
He said the industry is already facing pressure from several factors, including the continuing turmoil in West Asia. According to Mr Chandran, higher tariffs could severely affect Indian exporters’ ability to sell in the US and make their products uncompetitive in the market.
CITI has called for closer engagement between the Indian and US governments to ensure Indian exporters are not disadvantaged.
Why Is The US Market Important For Indian Textiles?
The US is described by CITI as India’s most significant market for textile and apparel exports by a considerable margin. The industry body said existing free trade agreements (FTAs) can help Indian exporters access additional markets, but these cannot replace the importance of the US market.
The CITI Chairman said a fair and balanced bilateral trade agreement (BTA) between India and the US is an urgent requirement. India and the US have been negotiating such an agreement, which is reportedly in the final stages.
How Are Indian Textile And Apparel Exports Performing?
India’s overall textile and apparel exports increased 6.39% in US dollar terms in August 2026 from a year earlier. Textile exports rose 13.03%, while apparel exports declined 2.74%.
For April-August 2026, textile exports increased 6.94% in US dollar terms. Apparel exports, however, declined 9.10%. As a result, cumulative textile and apparel exports were marginally lower by 0.24% year-on-year.
CITI said FTAs signed by India offer significant potential for exporters, but the benefits will not materialise automatically and will take time.
The India-EU FTA is expected to become operational next year, while the Comprehensive Economic and Trade Agreement (CETA) between India and the UK became effective on 15 July 2026.
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Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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