Indian textile sector turns corner as US tariffs normalize to 10%, demand recovery takes hold
Dolat Capital says worst is over for Indian textiles after US tariffs eased from 50% to 10% in Feb 2026. FTAs with UK, EU and Australia, plus capacity consolidation across 96 firms posting Rs 12,823 crore revenue, position India as a credible sourcing alternative to Bangladesh.
What happened
Indian textiles sector · Dolat Capital reports Indian textile sector is recovering as US tariffs normalized to 10% from 50% in February 2026. Improved demand,
Key facts
- 10%
- 50%
- 65-69%
- Rs 12,823 crore
- 96 firms
Why this matters
Scout bolt-on acquisitions among sub-scale players in the Rs 12,823 crore revenue pool to consolidate capacity before sourcing shifts from Bangladesh fully reprice valuations.