Union Textiles Minister Giriraj Singh on Tuesday, 26 May 2026 said that India's textile sector responded to United States tariff increases by adopting a diversification strategy under the guidance of Prime Minister Narendra Modi, pivoting to new export destinations and keeping the sector resilient despite global headwinds.

Context

Posting on X, Singh wrote in Hindi: 'जब अमेरिका ने टैरिफ बढ़ाया, तब माननीय प्रधानमंत्री श्री नरेन्द्र मोदी जी के मार्गदर्शन में हमने Diversification नीति अपनाई' — 'When America raised tariffs, under the honourable Prime Minister Shri Narendra Modi's guidance, we adopted a diversification policy.' He added that new countries were targeted for exports, ensuring the textile sector remained 'firmly unyielding' even amid global challenges.

The post comes against the backdrop of ongoing trade friction between India and the United States, where revised US tariff schedules have affected several labour-intensive Indian export sectors, textiles among the most exposed.

Policy Backdrop

India's textile and apparel sector is one of the country's largest employment generators, supporting an estimated 4.5 crore workers directly and many more in allied industries. Export markets — historically dominated by the US and the European Union — have been under pressure as importing nations recalibrate trade policy.

The government's AtmanirbharBharat framework and the Production Linked Incentive (PLI) scheme for textiles, launched to boost man-made fibre and technical textiles segments, form the structural backbone of this diversification push. Newer markets in Africa, West Asia, Latin America, and parts of Southeast Asia have been identified as priority destinations to reduce dependence on traditional Western buyers.

Singh, who holds the Textiles portfolio in the Modi cabinet and represents Begusarai constituency in Bihar, has been a vocal advocate for linking domestic manufacturing strength to export ambition under the Make in India umbrella.

Stakeholders and Impact

Exporters in textile hubs such as Surat, Tiruppur, Ludhiana, Panipat, and Ichalkaranji are directly affected by shifts in US trade policy. A successful pivot to alternative markets would cushion order books for weavers, spinners, and garment manufacturers who collectively drive a significant share of India's merchandise exports.

Industry bodies representing cotton yarn spinners and apparel exporters have previously called for government-backed market development funds and preferential trade agreements with emerging economies to sustain export momentum when traditional markets impose higher duties.

For workers — a large proportion of whom are women in garment units — stable export demand translates directly into wage security and continued employment, making the diversification narrative politically as well as economically significant.

What's Next

The minister's statement signals that New Delhi views the US tariff pressure not as a crisis but as a catalyst for structural rebalancing of India's textile export portfolio. Ongoing negotiations for bilateral trade agreements with several regions could formalise the market-access gains that the diversification drive seeks.

Analysts will watch upcoming export data from the Apparel Export Promotion Council (AEPC) and the Cotton Textiles Export Promotion Council (TEXPROCIL) for evidence of whether the shift to new geographies is translating into sustained order growth, or whether the sector still faces a net shortfall from reduced US demand.