Indian textile exporters risk losing US edge despite lower tariff rate
A 10% US Section 301 tariff on Indian textile and apparel exports is lower than rates facing several rivals, but tariff-rate quota exemptions for competing supplier nations could erode India’s competitiveness. The outcome now hinges on India-US trade negotiations.
Indian textile and apparel exporters face a 10% US Section 301 tariff but lack tariff-rate quota exemptions granted to rivals, reducing competitiveness. India retains a relatively favourable overall tariff position, while bilateral trade negotiations could determine future market access.
Why this matters
The signal extends recent warnings that US Section 301 tariffs could weaken Indian apparel exporters’ sourcing edge and leave India’s textile exporters exposed despite lower tariff rates.
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