India Apparel Exports Hit Fast Lane as US Slashes Tariffs to 18%

India’s apparel sector got a major boost as US tariffs were cut sharply from 50% to ~18%, restoring competitiveness after months of margin pressure.

Earlier, exporters faced 25% reciprocal duties + 25% Russia-linked energy tariffs, squeezing orders and shifting buyers to lower-duty countries.

At ~18% duty, India now competes strongly with Vietnam & Bangladesh (~20%) and gains a clear edge over China (30–35%) in the US market.

Combined with the EU FTA and expected UK CETA, exporters foresee monthly double-digit growth during 2026–27 and possible export doubling in 3 years.

The tariff reset is triggering fresh investments, capacity expansion, and PM MITRA utilisation, marking a potential turning point for India’s textile & apparel industry