The Confederation of Indian Textile Industry (CITI) has welcomed the recently announced trade agreement between India and the United States, describing it as a significant step towards strengthening bilateral trade and enhancing the competitiveness of Indian exports.

Reacting to the development, CITI Chairman Shri Ashwin Chandran expressed optimism over the reduction of US tariffs on Indian goods to 18 per cent, stating that the move would provide much-needed relief to the textile and apparel sector.

“The Confederation of Indian Textile Industry (CITI) heartily welcomes the announcement of the trade deal between the US and India and the reduction in the US tariff on Indian goods to 18%. CITI would like to express its sincere gratitude to both the US President, Mr Donald Trump and the Indian Prime Minister, Shri Narendra Modi, for this trade deal. This reduction in tariff will ensure our textile and apparel exporters are once again in a position to compete effectively in the US market, the single-largest market for India's textile and apparel exports. This deal will also ensure that factories can run at full steam once more and job creation can get back to previous levels,” he said.

According to CITI, the tariff reduction is expected to improve export competitiveness, revive production capacities, and support employment generation across textile manufacturing hubs in the country.

Industry experts have also highlighted the broader implications of the agreement for India’s consumer and retail ecosystem. Suresh Nair, Indirect Tax Partner, Consumer Products and Retail Sector, EY India, noted that the agreement could lead to improved market dynamics over time.

“The US-India trade engagement marks a potentially positive development for the consumer and retail landscape. Announced tariff rationalisation on select US imports could, over time, improve product availability and pricing dynamics in the Indian market. Greater access to imported goods at more competitive prices may support consumer choice and spending, while retailers could benefit from broader assortments and improved demand conditions. Overall, the measures are expected to have a supportive impact on consumer-facing segments, subject to the scope and pace of implementation,” Nair said.

The India–US trade deal is expected to strengthen economic cooperation between the two countries, enhance supply chain resilience, and create new growth opportunities for exporters, manufacturers, and retailers. Stakeholders across the textile and apparel value chain remain optimistic that the agreement will translate into sustained trade growth and long-term sectoral stability.