India’s $190-billion textile and apparel industry has expressed mixed reactions to the US government’s new 10% Section 301 tariff on Indian goods, imposed over forced labour concerns. While the duty was reduced from the proposed 12.5%, India was excluded from the tariff-rate quota (TRQ) benefits granted to Bangladesh, Cambodia, Indonesia, and Malaysia, raising concerns over lost competitiveness. Industry body CITI warned that the tariff could damage India’s reputation and divert sourcing orders, especially since the US remains India’s largest textile export market with shipments worth around $11 billion annually. Exporters also highlighted that policy uncertainty is delaying buyer decisions and disrupting production planning. Meanwhile, FIEO and other industry leaders believe India still holds a relative advantage over competitors facing higher US tariffs. The industry has urged the government to accelerate the proposed India–US Bilateral Trade Agreement (BTA) and extend the RoSCTL scheme to support exports. Trade experts also cautioned that the new Section 301 duty signals a long-term shift in US trade policy, requiring Indian exporters to prepare for sustained higher tariffs.