CAI Says India-US Trade Deal To Boost Cotton Industry.
India’s cotton and textiles sector is poised to benefit significantly from the proposed India–United States trade deal, with industry representatives expressing optimism that improved market access and lower tariffs will stimulate demand and exports.
Cotton trade bodies said the agreement could provide a timely boost to the sector, which has faced price volatility, rising input costs, and uneven global demand over the past year. The sector expects that greater certainty on tariffs and trade rules will encourage American buyers to place larger and longer-term orders.
This could translate into improved capacity utilisation across spinning mills, weaving units, and garment factories, especially in key textile hubs across Gujarat, Maharashtra, Tamil Nadu, and Telangana. Industry participants noted that sustained demand from the US market would also help stabilise domestic cotton prices, benefiting both farmers and manufacturers.
“This is an encouraging and forward-looking step for bilateral commerce, one that could pave the way for a deeper and more balanced trade partnership between India and the United States,” Cotton Association of India (CAI) President Vinay N. Kotak said in a statement.
With global companies reassessing supply chains amid geopolitical and logistical risks, India is seen as a natural partner due to its large raw material base, skilled workforce, and expanding manufacturing capacity. Enhanced access to the US market could accelerate investments in modernisation, sustainability, and compliance with international standards.
However, industry representatives cautioned that the final structure of the deal will be crucial. While tariff relief is expected to drive volumes, clarity on rules of origin, standards, and compliance requirements will determine the extent of the benefits. The cotton sector has urged negotiators to ensure that sensitive issues are addressed in a balanced manner to avoid unintended cost pressures on exporters.
Beyond exports, the anticipated rise in demand could have positive spillover effects on employment and rural incomes. Cotton is a labour-intensive value chain, supporting millions of farmers, ginners, mill workers, and garment employees across the country. A sustained upswing in exports to the US could therefore contribute to broader economic resilience.
Overall, cotton trade bodies believe the India–US trade deal represents a strategic opportunity. If implemented effectively, it could reinforce India’s position as a reliable supplier in global cotton and textile markets while supporting growth, jobs, and value addition across the sector.
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