Indian textiles turn corner as US tariff drops to 10% from 50% peak; demand recovery underway

Dolat Capital flags worst is behind for Indian textile sector. US reciprocal tariffs normalized to 10% versus 50% peak, FTAs with UK, EU and Australia improve sourcing competitiveness, and yarn demand is rebounding. PLI scheme cleared 96 firms with Rs 12,823 crore outlay, supporting capex visibility into Q1FY27.

— Filed Thu, 11 Jun, 2026, 13:07 IST · Source ET Small Business · Updated

Dolat Capital says Indian textile sector is recovering as US tariffs normalize to 10% from 50% peak, FTAs with UK/EU/Australia improve sourcing position, and yarn demand rebounds. PLI scheme cleared 96 firms with Rs 12,823 crore outlay.