India Gains Edge in Textile Exports Amid US Tariff Challenge

With the US imposing retaliatory tariffs, India finds itself in a favorable position to boost its textile exports. Experts highlight India's relative cost advantage over other garment-exporting countries. However, challenges like US market shrinkage and Trump tariffs still pose risks to the industry.

The US government's decision to implement retaliatory tariffs places India in a prime position to enhance its textile export market share. Experts argue that this move offers a relative cost advantage for India over competitor nations like China, Bangladesh, and Vietnam, bolstering its export potential.

Despite a 27% reciprocal tariff levied against Indian exports, this remains lower compared to the higher tariffs faced by competing countries. Industry leaders express optimism, citing increased inquiries from US buyers. Nevertheless, they also warn of potential market shrinkage if high prices dampen US consumer demand.

Companies are encouraged to capitalize on this opportunity by expanding capacities and modernizing technology. The Indian industry aims to leverage its established supply chain and skilled workforce, with some firms even investing in international operations to mitigate the impact of tariffs, as seen with Raymond's Ethiopian venture.

(With inputs from agencies.)