India-US trade deal: FY27 textile, apparel exports to grow in double digits

Industry executives expect India's textile and apparel exports to the US to post double-digit growth in FY27, aided by improved competitiveness following the India-US trade deal

India’s textile and apparel exports to the US are likely to experience double-digit growth in the financial year 2026–27, boosted by the interim framework for a India–US trade deal, industry experts said on Saturday.

 

India’s share in the $80 billion US apparel import market rose from about 5 per cent to nearly 7 per cent over the past two years, before temporarily dipping below 5 per cent in November due to short-term disruptions rather than structural weakness.

 

“With the new trade arrangement giving India a relative advantage over competing sourcing countries, the industry expects a quick return to a 6–7 per cent market share and is confident of double-digit export growth in the coming financial year,” said Prabhu Dhamodharan, convenor, Indian Texpreneurs Federation (ITF).

   

An industry thumb rule calculates that a one per cent market share is equivalent to roughly ₹7,000 crore in exports. Starting FY27, the sector is likely to see month-on-month double-digit growth in apparel and home textile exports, lifting the monthly apparel export run rate to $1.5 billion–$1.6 billion from the current $1.27 billion. At nearly $11 billion, India’s exports of textile and apparel products to the US accounted for close to 28 per cent of the country’s total exports in this category during FY25.

 

The trade deal may also play a crucial role in India’s ambitious target of achieving $100 billion worth of exports in the textile and apparel sector by 2030, up from $37.7 billion in FY25.

 

“The apparel sector — being one of the largest employment generators in the country — will benefit immensely. This move will help safeguard existing jobs and create substantial new employment opportunities, particularly for women and workers in labour-intensive segments,” said A Sakthivel, chairman, Apparel Export Promotion Council.

 

“The United States is India’s single largest apparel export market, and improved trade terms will significantly enhance the competitiveness of Indian apparel products in the US market,” he said. Sakthivel added that the development is expected to provide a strong impetus to apparel exports, attract fresh investments across the value chain, and further strengthen India’s position as a reliable global sourcing hub.

 

The 50 per cent US tariff on Indian goods, effective August 27, 2025, had adversely affected several Indian textile and apparel companies, raising concerns that millions of people employed in the sector could lose jobs and livelihoods. The knitwear hub of Tiruppur has already witnessed an estimated loss of ₹15,000 crore in 2025 due to the higher US tariffs.