The USTR proposes a 12.5% unilateral tariff on India and 53 other economies for failing to block forced labor imports. This strategic move threatens India’s export competitiveness and drastically complicates the ongoing India-US Bilateral Trade Agreement (BTA) negotiations.
Click to View MoreEmerging global trade arrangements and preferential market access for competing countries pose new challenges to India’s cotton and textile sector through tariff disadvantages and potential trade diversion. To remain competitive, India must strengthen trade engagement with key markets, reduce production and logistics costs, expand man-made fibre and technical textile capacity, promote sustainable and traceable cotton, and diversify export destinations. A coordinated push toward scale, value addition, and policy support will be essential to build a resilient, future-ready textile ecosystem and sustain India’s position in global supply chains.
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