By Sourav Shekhar
New Delhi, Feb 8 (.) HKL Magu, former chairperson, Apparel Export Promotion Council (AEPC), said that India’s textile and apparel industry is set for a major growth phase following the recent developments in the India-US trade deal.
In a telephonic interview with ., Magu described this situation as a ‘bonanza’ for exporters.
Speaking on the impact of the latest executive orders and trade agreements, Magu said, “Indian manufacturers are now far better placed to compete globally, especially in the US market.”
According to him, the removal of the earlier tariff burden has significantly improved India’s competitiveness.
After tariffs were imposed around April 2025, Indian exporters had struggled to retain buyers, as higher duties made their products less attractive compared to rival countries.
To prevent buyers from shifting elsewhere, exporters were forced to offer steep discounts of 15–20 per cent, squeezing margins across the sector.
The situation has now changed decisively. With the 25 per cent penalty removed and a second executive order expected to reduce tariffs further to around 18 per cent, Indian textile exporters are regaining lost ground.
Magu pointed out that this places India in a stronger position compared to several competing countries.
While nations such as Bangladesh, Pakistan, Sri Lanka, and Indonesia face duties ranging from 19 to 20 per cent, and China as high as 34 per cent, India’s lower tariff structure gives it a clear pricing advantage.
“This will make us the most competitive supplier in many categories,” Magu said, adding that the benefits will be felt across the value chain, including small and medium businesses.
Lower tariffs mean better order flows, improved margins, and the ability to scale operations without excessive discounting.
He also highlighted the broader global opportunity opening up for Indian textiles.
Along with the momentum in the US market, India has recently entered into a free trade agreement with the European Union, covering 27 countries.
While exports to Europe may take some time to fully pick up, Magu said the agreement strengthens India’s long-term position in global apparel and textile trade.
However, he cautioned that the industry must act quickly to capitalise on the opportunity. Capacity expansion will be critical, particularly in addressing labour availability.
“The main challenge now will be labour,” he said, stressing the need for better workforce planning, higher availability of skilled workers, and improved working conditions to support increased production.
Magu expressed confidence that the sector is on the cusp of strong growth. He estimated that India’s textile and apparel business could increase by at least USD 2–3 billion in the coming year, driven largely by renewed demand from the US market.
Overall, the easing of tariffs and strengthening of trade ties are expected to provide a strong boost to India’s textile exports, restoring buyer confidence and positioning the industry for sustained expansion in the global market.
Even the Textile Ministry said that for exports, the India-US trade deal will open up USD 118 billion global markets of textiles, apparels and made ups.
As the United States being India’s largest export destination of around USD 10.5 billion exports which comprises around 70 per cent apparel and 15 per cent made ups, this is a major opportunity.
It’s expected to play a crucial role in India achieving its intended target of USD 100 billion exports in 2030.
. SAS KK