Textile industry launches new knit campaign to counter US tariffs effects

Faced with lingering uncertainty due to US tariffs, India's knits industry is fighting back. Particularly the textile hub of Tiruppur has been feeling the heat since the US hit Indian textile exports with a 50 per cent tariff in late August 2025. This move has put India at a huge tariff disadvantage compared to its competitors, causing a sharp drop in orders and sparking fears of widespread job losses.

In response, the Indian government, in partnership with various Export Promotion Councils (EPCs), has launched a comprehensive campaign to boost exports and pivot away from the US market. An important part of the strategy is to capitalize on Free Trade Agreements (FTAs) and ongoing negotiations with several target markets. Deals with countries like the UK, along with potential agreements with the EU, are seen as critical to making Indian exports competitive again by slashing or eliminating tariffs.

The campaign isn't just about competing on cost. It's also highlighting India's capabilities in producing high-demand, high-value products such as biodegradable, anti-microbial, and technical yarns. This move is in line with the global shift toward more sustainable and innovative textiles.

The strategy also includes a renewed push for participation in international exhibitions, trade shows, and organizing buyer-seller meetings to directly link Indian exporters with potential international buyers. The recent ‘India Pavilion’ at the Yarn Expo Autumn 2025 in Shanghai is a prime example of this initiative.

The launch of this campaign is a direct reaction to the serious challenges posed by the US tariffs. It is a strategic and necessary move by India to navigate the tough trade environment created by the new US tariffs. The campaign's focus on diversifying markets and promoting value-added products, combined with domestic policy support, is vital for the long-term staying power and growth of India's textile and apparel industry.