Indian textile and apparel exporters could face fallout from the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, the Confederation of Indian Textile Industry (CITI) has warned, following its signing into law by the US President.
The trade body cautioned that any extra duties levied under the legislation would heap additional strain on a sector dominated by micro, small and medium enterprises (MSMEs). The US, it added, remains the single biggest destination for Indian textile and apparel shipments.
CITI Chairman Ashwin Chandran said fresh levies would be very hard for the MSME-heavy industry to bear, already squeezed by a range of pressures, among them the ongoing unrest across West Asia.
Such measures, he warned, would seriously erode the sector’s capacity to do business in the United States, its most important market by a very wide margin.
Chandran urged New Delhi to step up its engagement with Washington so that Indian exporters are not disadvantaged by any added duties.
Chandran added that the industry is keenly awaiting closer dialogue between New Delhi and the United States, aimed at preventing Indian exporters from being sidelined and priced out of contention altogether in what is the world’s largest economy.
CITI maintained that an equitable, balanced bilateral trade agreement (BTA) between the two nations is an urgent necessity, with negotiations between India and the US already under way for some time.
India’s newly signed free trade agreements (FTAs), Chandran further observed, may open up fresh markets for exporters but cannot substitute for the weight of the American market to the textile and apparel sector.
Those deals hold considerable promise, he added, yet the gains will not accrue automatically to exporters and will take time to come through in practice.
The India-UK Comprehensive Economic and Trade Agreement (CETA) came into force on 15 July 2026, while the India-EU FTA is slated to become operational next year.
Overall textile and apparel shipments from India rose 6.39% year-on-year in August 2026, with textiles up 13.03% and apparel down 2.74%.
Over the April-August 2026 stretch, textile exports grew by 6.94% while apparel exports slid 9.10%, leaving cumulative textile and apparel exports marginally lower, by 0.24% year-on-year.
“Deeper India-US commercial links could underpin technology tie-ups, supply-chain resilience and long-term competitiveness in the textile and apparel sector of India,” CITI added.
Image courtesy: Reuters
