4 Feb 2026·Source: The Hindu

5 min

EconomyNEWS

Apparel Industry Anticipates Order Surge After U.S. Tariff Reduction

Textile industry expects order revival and investments after U.S. tariff reduction to 18%.

Photo by Héctor J. Rivas

The textile and apparel industry anticipates a revival in orders and investments following the reduction of tariffs to 18% on exports to the U.S. Previously, textile and garment exports had declined by 30% and 31.4% in October and November 2025, respectively. K.M. Sub ramanian, president of Tiruppur Exporters Association, noted that almost 34% of knitted garment exports from Tiruppur go to the U.S. A. Sakthivel, Chairman of the Apparel Export Promotion Council, expects the tariff cut to boost apparel exports and attract fresh investments. Vijay Agarwal, chairman of the Cotton Textiles Export Promotion Council, believes the home textiles sector will also benefit.

Key Facts

U.S. tariff reduction: 18%

Textile export decline (Oct 2025): 30%

Textile export decline (Nov 2025): 31.4%

Tiruppur exports to U.S.: 34%

UPSC Exam Angles

GS Paper 3: Economy - Industry, trade, investment

Connects to syllabus topics like industrial policy, trade agreements, government schemes

Potential question types: Statement-based, analytical questions on the impact of trade policies

Visual Insights

More Information

Background

The textile and apparel industry is a significant contributor to the Indian economy, with a long and complex history. The sector's development is closely linked to India's trade policies and international agreements. Historically, India has been a major exporter of textiles, dating back to ancient times. The East India Company's involvement significantly impacted the industry, leading to deindustrialization in some areas and the rise of modern textile mills in others. Post-independence, the Indian government implemented various policies to promote the textile industry, including the establishment of textile research institutes and the promotion of handloom and khadi. The introduction of the Multi-Fibre Arrangement (MFA) in 1974, which regulated international trade in textiles and clothing, had a significant impact on the industry. The phasing out of the MFA in 2005 led to increased competition and opportunities for Indian textile exporters. The government has also focused on promoting textile parks and clusters to enhance competitiveness. Several government schemes and policies support the textile industry, including the Production Linked Incentive (PLI) scheme and the Amended Technology Upgradation Fund Scheme (ATUFS). These schemes aim to boost domestic manufacturing, attract investment, and promote technology upgradation in the textile sector. The industry is also governed by various labor laws and environmental regulations, which aim to protect workers' rights and promote sustainable practices. The Ministry of Textiles is the nodal agency responsible for the overall development of the textile and apparel industry in India. India's textile industry faces competition from other major textile exporting countries, such as China, Bangladesh, and Vietnam. International trade agreements and tariff policies play a crucial role in determining the competitiveness of Indian textile exports. The industry is also affected by global economic trends and changes in consumer demand. The ongoing focus on sustainability and ethical sourcing is also shaping the future of the textile industry.

Latest Developments

Recent years have seen a renewed focus on promoting sustainable and circular practices in the textile industry. The government is encouraging the adoption of eco-friendly technologies and the use of recycled materials. The National Circular Economy Roadmap highlights textiles as a key sector for promoting circularity. There is also growing emphasis on traceability and transparency in the supply chain. The COVID-19 pandemic had a significant impact on the textile industry, leading to disruptions in supply chains and a decline in demand. However, the industry has shown resilience and is gradually recovering. The government has announced various measures to support the industry during the pandemic, including financial assistance and export promotion schemes. The rise of e-commerce has also created new opportunities for textile and apparel retailers. The future of the Indian textile industry is expected to be driven by innovation, technology adoption, and a focus on sustainability. The industry is investing in automation, digitalization, and advanced manufacturing techniques to enhance productivity and efficiency. The government is also promoting research and development in the textile sector. The growing demand for technical textiles is also expected to drive growth in the industry. The Make in India initiative continues to play a crucial role in attracting investments and promoting domestic manufacturing in the textile sector. Challenges remain, including infrastructure bottlenecks, skill gaps, and the need for greater competitiveness. Addressing these challenges will be crucial for realizing the full potential of the Indian textile industry. The industry also needs to adapt to changing consumer preferences and global trends. The focus on value addition and diversification will be essential for sustaining growth and maintaining a competitive edge. The ongoing trade negotiations and agreements will also shape the future of the industry.

Frequently Asked Questions

1. What are the key facts about the U.S. tariff reduction on apparel for the UPSC Prelims exam?

The key facts to remember are that the U.S. tariff reduction is 18%. Also, note the textile export decline in October and November 2025, which were 30% and 31.4% respectively. Finally, remember that approximately 34% of knitted garment exports from Tiruppur go to the U.S.

Exam Tip

Focus on remembering the percentages related to tariff reduction and export decline as these are frequently tested in Prelims.

2. What is the significance of the U.S. tariff reduction on the Indian apparel industry?

The U.S. tariff reduction to 18% is significant because it is expected to revive orders and investments in the Indian apparel industry. Previously, the industry experienced a decline in textile and garment exports. The tariff cut aims to boost apparel exports and attract fresh investments, benefiting sectors like home textiles as well.

3. How might the U.S. tariff reduction impact common citizens in India?

The tariff reduction can lead to increased economic activity in textile hubs like Tiruppur, creating more job opportunities. This can improve the income and living standards of people employed in the textile industry. Also, increased exports can contribute to overall economic growth, potentially benefiting citizens through government programs and infrastructure development.

4. What recent developments in the textile industry are linked to this U.S. tariff reduction?

The recent developments include a decline in textile and garment exports in October and November 2025. The tariff reduction is seen as a measure to counter this decline and boost the industry's performance. Industry stakeholders anticipate a revival in orders and investments following this reduction.

5. Explain the roles of K.M. Sub ramanian, A. Sakthivel, and Vijay Agarwal in the context of this news.

K.M. Sub ramanian, president of Tiruppur Exporters Association, highlighted the importance of the U.S. market for Tiruppur's knitted garment exports. A. Sakthivel, Chairman of the Apparel Export Promotion Council, expects the tariff cut to boost apparel exports. Vijay Agarwal, chairman of the Cotton Textiles Export Promotion Council, believes the home textiles sector will also benefit.

6. What is the Apparel Export Promotion Council, and why is it relevant to this news?

The Apparel Export Promotion Council is an organization that promotes apparel exports from India. It is relevant because its chairman, A. Sakthivel, expects the U.S. tariff cut to significantly boost apparel exports. This expectation highlights the council's role in advocating for policies that benefit the industry.

7. What reforms are needed in the Indian textile industry to maximize the benefits of the U.S. tariff reduction?

While the specific reforms are not detailed in the provided text, generally, reforms could include improving infrastructure, promoting technological upgrades, and streamlining regulatory processes. Encouraging sustainable practices and focusing on value-added products can also enhance competitiveness and maximize benefits.

8. Why is the textile industry considered a 'HIGH' importance category for UPSC preparation?

The textile industry is considered of high importance because it is a significant contributor to the Indian economy and employment. Changes in trade policies, such as the U.S. tariff reduction, can have substantial economic impacts. Understanding these impacts is crucial for a comprehensive understanding of the Indian economy.

9. What are the important dates to remember regarding the textile export decline mentioned in the article?

The important dates to remember are October 2025 and November 2025, when textile exports declined by 30% and 31.4%, respectively. These figures highlight the context for the U.S. tariff reduction.

Exam Tip

Create a timeline of key events in the textile industry to easily recall dates and related facts.

10. What government initiatives are likely to be relevant in maximizing the benefit of this tariff reduction?

While specific initiatives aren't mentioned, government support for export promotion, infrastructure development, and skill development in the textile sector would be relevant. Also, initiatives promoting sustainable and circular economy practices in textiles, as mentioned in the background context, could further enhance the industry's competitiveness.

Practice Questions (MCQs)

1. Consider the following statements regarding the recent developments in the Indian apparel industry: 1. Textile and garment exports declined by more than 30% in both October and November 2025. 2. The U.S. has reduced tariffs on apparel exports from India to 18%. 3. Approximately 34% of knitted garment exports from Tiruppur are destined for the U.S. Which of the statements given above is/are correct?

A.1 and 2 only
B.2 and 3 only
C.1 and 3 only
D.1, 2 and 3

Show Answer

Answer: D

All three statements are correct based on the provided summary. Statement 1 is correct as textile and garment exports declined by 30% and 31.4% in October and November 2025, respectively. Statement 2 is correct as the U.S. has reduced tariffs to 18% on exports. Statement 3 is correct as almost 34% of knitted garment exports from Tiruppur go to the U.S.

2. Which of the following organizations is primarily responsible for promoting apparel exports from India?

A.Cotton Textiles Export Promotion Council (TEXPROCIL)
B.Apparel Export Promotion Council (AEPC)
C.Tiruppur Exporters Association (TEA)
D.Export Promotion Council for Handicrafts (EPCH)

Show Answer

Answer: B

According to the summary, A. Sakthivel is the Chairman of the Apparel Export Promotion Council (AEPC). The AEPC is expected to boost apparel exports and attract fresh investments following the tariff cut. Therefore, the AEPC is the organization primarily responsible for promoting apparel exports from India.

3. Consider the following statements regarding the Multi-Fibre Arrangement (MFA): 1. The MFA was established in 1974 to regulate international trade in textiles and clothing. 2. The MFA aimed to protect developing countries from competition from developed countries in the textile sector. 3. The MFA was completely phased out by 2005. Which of the statements given above is/are correct?

A.1 and 2 only
B.1 and 3 only
C.2 and 3 only
D.1, 2 and 3

Show Answer

Answer: B

Statements 1 and 3 are correct. The Multi-Fibre Arrangement (MFA) was established in 1974 to regulate international trade in textiles and clothing. It was indeed phased out by 2005. Statement 2 is incorrect because the MFA aimed to regulate trade between developed and developing countries, not necessarily to protect developing countries. It imposed quotas on imports from developing countries.