Strategic Analysis: US Tariff Reduction to 18% Poised to Catalyze Indian Textile and Leather Export Surge

A significant shift in U.S. trade policy, reducing tariffs on Indian textiles and leather to 18%, is projected to substantially enhance export competitiveness for these sectors. Intelligence assessments indicate that from Fiscal Year 2026–27, the industry could experience sustained month-on-month double-digit growth in apparel and home textile exports. This development is expected to elevate the monthly apparel export run rate to an estimated $1.5–1.6 billion, a notable increase from the current $1.27 billion baseline. The tariff adjustment is anticipated to improve market access and pricing advantages for Indian exporters, potentially altering global supply chain dynamics. This policy change reflects evolving bilateral trade relations and may stimulate broader economic activity within India's manufacturing and export-oriented industries. Stakeholders are advised to monitor implementation timelines and competitive responses from other exporting nations.