India impact devices of 50% of the rate in exports to the United States

On August 27, a 50% tariff is developed on Indian goods that enter the United States. A perspective that is especially worrying for the Indian textile industry, a sector in which the country is the second largest supplier of the United States after China.

Last year, India exported textile and clothing products worth $ 16.3 billion to the United States. And recent tensions related to non -success trade negotiations between the two nations led US importers to increase their orders made to Indian manufacturers. In H1 2025, American orders to India grew by 18.6%, while orders placed in China fell 16.2%.

The United States clearly plays a key role in the textile and clothing export strategy of India, being the market that absorbs 25% of Indian exports. Like other Asian countries led by Donald Trump's new rates, India has expressed through his government the possibility of redirecting its exports to European clients. Last year, India exported textile and clothing products of 6,700 million euros to the EU, but now it would have to compete with other Asian suppliers countries in the European market.

The Indian government is also concerned about the impact that US tariffs would have on employment. It is said that only the textile sector generates more than 45 million direct jobs in India, more or less 100 million additional indirect jobs, which makes it the second largest employer in the country. India is also one of the main cotton producers in the world, and has more than 3,400 textile factories.