India is set to launch targeted outreach programs in 40 key markets, including the UK, Japan, South Korea, Germany, France, Italy, Spain, Canada, and Australia, to boost textile exports amid the steep 50% tariff imposed by the United States on Indian goods.

According to an official statement, these initiatives aim to position India as a reliable supplier of high-quality, sustainable, and innovative textile products with the active involvement of Indian industry bodies, Export Promotion Councils (EPCs), and Indian missions abroad.

These 40 nations collectively represent over USD 590 billion in textile and apparel imports, offering a significant opportunity for India, which currently holds just 5-6% market share. Despite exporting to more than 220 countries, India sees these markets as critical for diversification and growth.

The 50% tariff, effective from August 27, impacts Indian exports worth over USD 48 billion, hitting sectors such as textiles, gems and jewellery, shrimp, leather, chemicals, and machinery. Within textiles, exports worth USD 10.3 billion face the highest strain, second only to gems and jewellery at USD 12 billion.

Export Promotion Councils will play a key role in India’s diversification plan by mapping high-demand products, linking production clusters like Surat, Panipat, Tirupur, and Bhadohi to global buyers, and leading participation in international trade events under the unified “Brand India” campaign. The councils will also guide exporters on leveraging Free Trade Agreements (FTAs), meeting sustainability norms, and obtaining certifications.

Industry leaders are urging urgent fiscal relief to withstand the heavy tariffs until India secures a favorable trade agreement with the US. Mithileshwar Thakur, Secretary General of the Apparel Export Promotion Council (AEPC), warned that the apparel sector faces a severe competitive disadvantage compared to countries like Bangladesh, Vietnam, Sri Lanka, and Cambodia, which could permanently shift US buyers away from Indian suppliers.

In the meantime, India is aggressively pursuing new opportunities in traditional and emerging markets, with a strong focus on FTAs with the UK and EFTA nations to minimize losses and regain growth momentum.