India’s apparel and textile industry continues to face uncertainty as prospects for an early conclusion to a US–India trade agreement appear to be fading.
The trade talks appear to be heading towards another deadlock after India imposed a 30% import duty on pulses and lentils from the US. India’s decision to press ahead with retaliatory tariffs underscores its willingness to take firm positions, even at the risk of short-term diplomatic friction.
While both governments have repeatedly signalled an interest in expanding bilateral trade and exploring a more comprehensive trade arrangement, differences over tariff levels, market access and reciprocity have remained unresolved.
The tariff standoff comes at a challenging moment for India’s apparel exports, with India’s apparel exports to the US in October 2025 fell to US $ 143.34 million from US $ 162.96 million in October 2024, a fall of approximately 12%
Higher or uncertain tariff barriers have eroded price competitiveness for Indian suppliers, especially in basic apparel categories where margins are thin and competition from countries such as Bangladesh, Vietnam and Cambodia is intense.
