New Delhi: India’s textile and garment exporters are looking to Europe for relief after a sharp blow from new United States tariffs that have reduced their sales and raised fears of job losses.
Last year, the United States imposed high tariffs on many Indian textile and apparel products. These duties, which go up to 50 percent on some items, have made Indian goods more expensive in the US market. As a result, exporters say orders from American buyers have dropped and profit margins have come under pressure.
To manage the impact, exporters are now placing their hopes on a new trade agreement between India and the European Union. The deal was signed earlier this week after many years of talks. It aims to reduce or remove tariffs on most goods traded between the two sides, including clothing and textiles.
Under the agreement, European duties on Indian garments, which are currently around 12 percent, are expected to be phased out once the pact is fully implemented. This could make Indian products more competitive in Europe compared to rivals such as Bangladesh and Vietnam.
Industry leaders say Europe could become a key market to replace part of the lost US business. Textile hubs such as Tiruppur, Panipat and Jaipur are already preparing to expand their links with European buyers. Exporters believe the deal will help increase orders and protect jobs in factories that employ millions of workers.
However, the benefits will not be immediate. The agreement still needs approval from European institutions and member countries, and full tariff cuts are expected to begin around 2027. In the meantime, exporters must meet strict European rules on chemicals, labeling and sustainability, which may increase costs.
Trade bodies say the deal could help India move closer to its long term goal of reaching 100 billion dollars in textile exports by 2030. They also see it as a step toward reducing dependence on a single market like the United States.
For now, the industry remains cautious but hopeful. While the US tariffs have created serious challenges, exporters believe that stronger ties with Europe can offer a new path for growth and stability in the coming years.