India Expands Global Outreach in 40 Nations to Shield Textile Exports Amid U.S. Tariff Blow

Hours after the U.S. imposed steep 50% tariffs on Indian goods, India has rolled out a dedicated outreach programme in 40 key markets to strengthen its textile exports. The move comes as the sector, which employs over 45 million people, has been identified as one of the worst-hit under Washington’s new tariff regime.

Targeting Key Global Markets

According to officials, India will prioritise countries including Germany, the U.K., France, Italy, Spain, the Netherlands, Poland, Japan, South Korea, Canada, Mexico, Russia, Belgium, Turkiye, the U.A.E., and Australia. These nations collectively account for more than $590 billion in annual textile and apparel imports. However, India’s current share in these markets stands at only 5–6%, leaving significant room for expansion.

The initiative will position Indian textiles as reliable, sustainable, and innovative. Export Promotion Councils (EPCs), alongside Indian missions abroad, will play a central role in promoting products and engaging with buyers to offset losses in the U.S. market.

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U.S. Market Shock and Rising Risks

The U.S., India’s largest textile export destination, absorbed $10.8 billion worth of shipments last year, amounting to 35% of overall exports. However, with the new tariffs pushing total duties on Indian apparel to nearly 63.9%, exporters now face a 30–35% price disadvantage compared to competitors such as Bangladesh, Vietnam, Mexico, and Central American nations.

Industry experts have cautioned that if the tariff remains in place, India’s apparel sector alone could lose 15–20 lakh jobs. The fallout is expected to ripple across labour-intensive industries, adding pressure on India’s trade competitiveness.

Export Growth and Diversification Drive

Despite challenges in the U.S. market, India’s textile exports rose by 5.37% year-on-year to $3.10 billion in July 2025, according to the Directorate General of Commercial Intelligence & Statistics (DGCIS). Cumulative exports between April and July reached $12.18 billion, marking a 3.87% increase over the previous year.

Officials emphasise that while India currently exports to more than 220 countries, the 40 identified markets hold the real key to diversification. The strategy is seen as a safeguard against heavy reliance on the U.S., especially as the new tariff is projected to impact Indian exports worth over $48 billion across multiple sectors, including textiles, gems and jewellery, shrimp, leather, chemicals, and machinery.

Conclusion

India’s outreach to 40 global markets signals a decisive push to diversify its textile exports and reduce dependence on the U.S.. With rising risks of job losses and weakened competitiveness, the initiative aims to protect livelihoods and sustain India’s role in global trade. Coordinated efforts between industry bodies and government agencies will be crucial to navigating this challenging phase.