Emerging 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.
Click to View MoreThe February 2026 trade deal between India and the United States cut tariffs to boost textiles and pharmaceuticals, benefiting hubs like Tiruppur. In return, India pledged reduced Russia energy imports, raising concerns over strategic autonomy and persistent steel tariff barriers.
Click to View MoreIndia’s technical textiles sector focuses on functional and high-value textiles used in healthcare, defense, construction, agriculture, and industry. With initiatives like the National Technical Textiles Mission, PM MITRA Parks, and PLI schemes, the government is promoting R&D, innovation, domestic manufacturing, and exports. Key challenges include import dependence, skill gaps, and limited awareness, while the way forward emphasizes technology adoption, infrastructure development, policy support, and sustainability.
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