US Tariffs Threaten India's Readymade Garment Export Growth

India's readymade garment industry faces a major setback as the US imposes 50% tariffs, significantly impacting revenue growth. This tariff will challenge India's competitiveness against China, Bangladesh, and Vietnam. To mitigate losses, India looks to strengthen trade with the EU, UK, and UAE.

India's readymade garment sector faces a stark challenge as US tariffs are set to increase by 50%, threatening to halve revenue growth to 3-5% this fiscal year, according to a recent report.

These tariffs, effective August 27, 2025, will particularly affect the US-bound exports, which previously constituted a third of the sector's revenue.

In response, Indian exporters are pivoting to the EU, UK, and UAE markets to mitigate potential losses and benefit from the new Free Trade Agreement (FTA) with the UK.