Introduction

The global cotton market is experiencing a shift due to falling US cotton prices and China’s retaliatory tariffs. These changes have significant implications for India’s textile industry, opening up new opportunities for exporters.

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Key Market Dynamics

Aspect	Impact
US Cotton Price Decline	Prices at four-year lows due to 10-15% tariffs imposed by China.
Indian Textile Demand	Likely to increase, as Indian exporters gain market share in US and Europe.
Competitive Advantage	China’s reduced competitiveness provides Indian exporters growth opportunities.
Cotton Imports	India’s cotton imports increased 62% in 2024-25, reaching $570 million.
US Cotton Share	$221 million (38.7%) of India’s imported cotton came from the US.
ELS Cotton Imports	Indian manufacturers rely on Extra-Long Staple (ELS) cotton from the US for quality production.
Profit Margins	Expected improvement due to better pricing opportunities in global markets.
Trade Partnerships	India and the US could strengthen trade ties, as the US looks to diversify exports away from China.

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Conclusion

The decline in US cotton prices and China’s retaliatory tariffs are reshaping the global textile industry. With increased exports, better margins, and new trade partnerships, India’s textile sector stands to benefit significantly from these changing market dynamics.