By Dr. Jaijit Bhattacharya

The United States’ recent imposition of a 50 per cent tariff on Indian textiles and apparel has delivered a sharp jolt to the sector. India exported nearly Rs 90,000 crore worth of textiles to the US in FY 2024–25, according to data from Ministry of Textiles1. But this important market is now at risk as competing suppliers become relatively more attractive due to the tariff advantage. Bangladesh’s apparel exports face tariffs of just 16–18 percent, Vietnam around 20 percent, and China about 25 percent, all significantly below India’s 50 percent levy.

This tariff differential has made Indian textiles uncompetitive in the US market leading to significant job losses in India and migration of

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