Victory of Donald Trump brings both opportunities and risks for the Indian textile industry largely hinging on trade policies, tariffs, and the US-China dynamic. In Trump’s previous regime, India lost its Generalized System of Preferences (GSP) status, which had allowed tariff-free exports of textile goods. If Trump adopts the same stance in its new regime, India might face similar restrictions once again. Trump’s ‘America First’ policy would lead to more tariffs on imports, including textiles. Indian textile exports could face pressure in the U.S. market. On the other hand, Trump may take tough stand on China.
During Trump’s first term, US-China conflict forced US companies to look at India for alternatives in sourcing, provided a significant boost to Indian apparel and textile exports. The industry saw surge in demand from US buyers, seeking non-Chinese sources to avoid tariffs and supply chain disruptions. Tougher stand on China, could create opportunities for Indian textile companies to replace Chinese exports in the U.S. market. India, being a major exporter of textiles and apparel to the US, could see a rise in demand for its products.
Additionally, Trump’s policies would further strengthen the US Dollar, this would enhance India’s global competitiveness, potentially increasing India’s share in the global textile markets thereby make textile product more attractive to international buyers.
In summary, while a Trump win could add challenges with tariffs, the potential shift in trade away from China could open doors for Indian textiles in the long run.