CITI Warns US Tariffs Could Hit Textile Exports
The Confederation of Indian Textile Industry (CITI) has warned that any additional US tariffs linked to India’s purchase of Russian energy could severely affect the country’s textile and apparel exports. The industry body said the United States remains India’s single-largest market for the sector and higher duties could make Indian products significantly less competitive.
CITI Flags Risk to Indian Textile Exports
CITI Chairman Ashwin Chandran said the textile and apparel industry, which is heavily dominated by MSMEs, would find it difficult to absorb another round of tariff increases.
The warning follows US President Donald Trump signing the Sanctioning Russia and Iran Act of 2026, which gives Washington powers to impose tariffs of up to 100% on goods from major countries continuing significant purchases of Russian oil and gas.
However, the legislation does not automatically impose a 100% tariff on Indian textile exports. The actual impact will depend on the tariff rate, products covered and implementation schedule eventually decided by the US administration.
US Remains Critical Market for Indian Textiles
CITI said the continuing instability in West Asia has already increased pressure on textile manufacturers and exporters. Additional US duties could further weaken margins, affect order flows and encourage American buyers to shift sourcing to competing countries.
India exports nearly $11 billion worth of textiles and apparel to the United States annually, making the market particularly important for the sector.
CITI Seeks India-US Trade Agreement
The industry body urged the Indian government to intensify engagement with Washington and prevent Indian exporters from being placed at a competitive disadvantage.
CITI also said India’s free trade agreements with other major economies could help exporters diversify over time, but those markets cannot immediately replace the scale of US demand.
It called for a fair, balanced and predictable India-US trade framework to protect long-term textile and apparel competitiveness.
