As the global fashion industry faces mounting pressure to address its environmental footprint, India is positioning itself to turn mountains of fabric waste into a goldmine. According to a landmark report titled "Mapping of Textile Waste Value Chain in India," launched by Union Textiles Minister Giriraj Singh, the country's textile recycling market is projected to skyrocket to $3.5 billion by 2030. This green evolution is expected to do more than just clean up the planet; it is forecasted to generate approximately 100,000 new "green jobs" across the nation.
The first comprehensive trade report of 2026 has confirmed a seismic shift in the global fashion industry: Vietnam has officially toppled China as the leading garment supplier to the United States. According to 2025 TexPro trade data, Vietnam’s apparel exports to the US hit $17.02 billion, capturing a 20.81 percent market share. Meanwhile, China’s direct exports plummeted to $11.95 billion, a sharp decline from the $18.40 billion recorded just a year prior.
The recent trade agreement between Indonesia and the United States, headlined by a zero-percent tariff facility for Indonesian textile and garment products, has sparked a complex debate within the Southeast Asian manufacturing hub. While the deal promises unprecedented access to the lucrative American market, experts warn that the road to a full industrial recovery remains fraught with structural hurdles that a simple tariff cut may not solve.
CSIS Warns of Supply Chain Disruptions Hidden Behind Indonesia-US Zero Percent Textile Tariff Scheme
The Centre for Strategic and International Studies (CSIS) has highlighted potential risks underlying the implementation of a zero percent tariff for textile products within the Indonesia–United States trade agreement. Riandy Laksono, a researcher from the CSIS Economics Department, warns that while the policy appears beneficial, it could trigger significant disruptions in the national textile industry's supply chain. Under the Reciprocal Trade Agreement (RTA) scheme, the tariff-free quota for Indonesian textile products is determined by the volume of raw materials sourced from the United States. Essentially, the larger the portion of U.S. raw materials used in production, the greater the opportunity for Indonesian manufacturers to access the zero percent tariff facility.
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