Indian Apparel, Textile Exporters To Gain From US’ Reciprocal Tariffs: Report

April 08, 2025

Category: GARMENTS

Country: India

Region: South Asia

By BW Online Bureau
07th April, 2025.

The report states that the Indian players will have a competitive edge over other countries exporting to the United States

The reciprocal tariffs imposed by the United States (US) are likely to benefit the Indian textile industry, especially the players engaged in the export of apparel and home textiles. A report has stated that Indian players will have a competitive edge over other countries exporting to the US, given that higher tariffs have been imposed on these countries as compared to India.

India Ratings and Research (Ind-Ra), in its report, stated that with 26 per cent US tariff, India competes with countries such as China (34 per cent), Vietnam (46 per cent), Cambodia (49 per cent), Bangladesh (37 per cent); Sri Lanka (44 per cent) and Indonesia (32 per cent) in the textile space.

However, the report highlighted that the United States could face a demand slowdown due to increased landed prices which may lead to oversupply. Hence, there could be a threat of incremental imports into India, the report added.

“Imports into India of the products exported to the US may not be severe as the overall market for premium products at high price points would be small, but the increased tariffs could cause supply chain reorientation with competing countries shifting exports to other regions such as the European Union,” as stated in the Ind-Ra report.

As far as the immediate impact is concerned, the report highlighted that the Indian textile industry may not be in a position to cash on the opportunity on an immediate basis. This is due to the limited capacity to scale up supply immediately and would need to set up facilities and obtain approvals from international buyers which could take some time.

The report added that textile yarn and fabric exporters to competing countries may face pressure due to lower exports by those countries to the US amid a likely slowdown.

Courtesy: businessworld.in