In 2023, the US accounted for approximately 27 per cent of India’s total textile and apparel exports, underscoring its crucial role in the industry’s global reach.

In the current financial year, India’s textile and apparel exports to the US during April-August increased by about 6 per cent compared to the same period last year.

“This outpaced the growth rates of key competitors, with China at 2 per cent, Vietnam at 0.4 per cent, and Bangladesh recording a decline of -2.2 per cent. India’s enhanced performance signals its growing preference among US buyers and highlights its increasing share in this critical market,” said CITI Chairman Rakesh Mehra.

Mehra emphasised that President Trump’s previous administration focused on reducing dependency on China by diversifying trade sources, a stance that aligns with India's aspirations to strengthen its position in the US market.

"With the new administration, the Indian textile and apparel industry is optimistic about expanding its role as an alternative supplier to China,” said Mehta.

However, a significant barrier remains in the form of high tariff rates, which for certain apparel categories can reach up to 32 per cent.

This restricts India’s ability to further increase its market share, said Mehta.

He further stated that new government will work closely with India to facilitate revisions in tariffs, thus positioning India as a key supplier of quality textile and apparel products to the US.

This could catalyse a new phase in India-US textile trade relations, providing a valuable alternative to China for American retailers and consumers alike, said the confederation.