President Trump's imposition of tariffs has inadvertently positioned India favorably in the textile export market relative to its competitors. Despite facing a 27% reciprocal tariff from the US, India enjoys a comparative advantage over Vietnam, Bangladesh, Cambodia, and Pakistan, which are subject to significantly higher tariffs of 46%, 37%, 49%, and 30%, respectively.

Indian textile companies are closely monitoring potential incentive schemes being considered by competitor nations to mitigate the impact of recently imposed US tariffs, industry sources revealed today. While the tariffs levied by the United States have currently placed India at a competitive advantage over several other major textile exporting countries facing higher duties, there is growing concern within the Indian textile sector that these nations might introduce measures to cushion the effect and retain their market share in the lucrative US market.

The Indian textile industry is urging the government to remain vigilant and consider additional measures to support exports and enhance competitiveness in the long run. This includes exploring potential new markets, further streamlining export processes, and investing in technological upgrades to maintain a strong position in the global textile trade. The coming months are expected to be crucial in determining the long-term impact of the US tariffs and the counter-strategies adopted by various textile-exporting nations.