India–US Tariff Rollback: Textiles, Chemicals and Seafood Emerge as Key Beneficiaries

India’s export-oriented sectors are set to benefit after the US reduced tariffs on Indian goods to 18% from 25%, easing pressure that had built up over the past few months. The rollback improves pricing competitiveness, margins, and order visibility for companies with strong US exposure. Textiles and apparel emerge as the biggest winners. The US accounts for nearly 28% of India’s textile exports, and the sector is highly price-sensitive. Lower tariffs narrow the gap with competitors like Bangladesh and Vietnam, supporting demand for cotton garments, home textiles, and made-ups. Companies with higher US exposure are likely to see faster volume recovery and better pricing power. Chemicals also stand to gain, especially speciality chemicals and intermediates. While demand here is driven by long-term contracts, lower tariffs improve net realisations and strengthen India’s role in US supply chains under the China-plus-one strategy. This supports steady order flows and margin stability. Engineering goods benefit through better competitiveness. With thin margins and large exposure to the US market, even a small tariff cut is earnings-positive. Lower duties improve negotiating power in contract renewals and help Indian exporters compete more effectively with East Asian suppliers. Gems and jewellery see relief in landed costs. Reduced tariffs ease pressure on US wholesalers and retailers, helping Indian exporters protect margins in a highly competitive, high-value segment. Seafood exporters get demand and margin support. The US is a key market for shrimp and frozen foods. Lower tariffs reduce landed costs, which should help stabilise volumes and improve profitability for exporters with high US dependence. Overall, the tariff rollback removes a major overhang for Indian exporters, setting the stage for broader sector-level recovery, improved earnings visibility, and stronger export momentum going forward.