Textile and apparel players anticipate higher sourcing by global brands, as India now enjoys one of the lowest tariff regimes among major Asian manufacturing hubs, giving it a slight edge over competitors like Bangladesh, Sri Lanka, Vietnam, and China. This tariff relief is seen as particularly beneficial for small and medium exporters in key clusters such as Surat, Gurugram, and Tirupur, helping create a level playing field.
Prabhu Dhamodharan, convenor of the Indian Texpreneurs Federation, highlighted the rising interest from the US market. “The apparel and home textile exports will witness month-on-month double-digit growth from the 2026–27 fiscal, lifting the monthly apparel export run rate to $1.5 to $1.6 billion, from the current $1.3 billion,” he said.
Trade terms to strengthen competitiveness
A Sakthivel, chairman of the Apparel Export Promotion Council, emphasised that the improved trade terms would significantly enhance the competitiveness of Indian apparel products in the US market.
The leather sector has described the US tariff cut to 18% as a “double dhamaka,” especially following India’s strategic trade deal with the European Union.
As per TOI, Israr Ahmed, former vice-president of the Federation of Indian Export Organisations (FIEO) and managing director of the Farida Group, explained the financial impact on exporters: “Exporters had been absorbing the impact of high tariffs by offering discounts of 20–30%. With the US now reducing tariffs on Indian goods to 18%—a rate lower than those faced by key South Asian competitors, such as Bangladesh and Vietnam—these heavy discounts are no longer necessary,” he said, noting that this would help restore pricing and margins.
Rafiq Ahmed, chairman of Kothari Industrial Corporation, pointed out that while competition in the US market has intensified over the past year, strong existing relationships would help Indian exporters reclaim lost ground. “The orders from the US, which got reduced in the past one year, will start flowing,” he said.
Yavar Dhala, vice-president of the Indian Shoe Federation and CEO of Infinite Leather, added that India’s share of leather exports to the US could rise from around 22% to nearly 30% this year. He noted that factories operating fewer days due to high tariffs could return to a six-day work week, signaling a potential revival in employment and production.