India’s garment and textile exports to the United States are valued at an impressive ₹87,000 crore annually, reflecting the deep trade ties between the two countries. This vast export basket includes home textiles, garments, technical fabrics, and specialty products, catering to leading U.S. retailers, hospitality brands, and institutional buyers. The sector thrives on India’s strong manufacturing base, skilled workforce, and continuous innovation in fabrics and designs. However, the recent announcement of U.S. tariff hikes—potentially reaching up to 50% on certain categories—poses a significant challenge to sustaining this growth momentum. moneycontrol.com
Impact of Tariff Changes :
The Indian garment industry faces growing uncertainty as these tariff changes threaten its largest export destination. Higher duties risk reducing demand and shifting orders to competing low-tariff countries such as Vietnam, Bangladesh, and Indonesia. Given that the U.S. accounts for ₹87,000 crore in annual textile and garment imports from India, any disruption could have a serious impact on revenues, employment, and the overall health of the sector. To survive, Indian exporters are now prioritizing value-added products, design innovation, and partial localization of production to remain competitive.
Major Indian Exporters to the U.S.:
Several Indian companies leading exporters to the U.S. market:
- Welspun Living (Welspun India) – A global leader in home textiles, especially towels, bedsheets, and rugs.
- Indo Count Industries – Specializes in bed linen and other home textile products.
- Trident Group – Major producer of towels, bedsheets, and yarns.
- KPR Mill – Exports garments and knitted fabrics to leading U.S. apparel brands.
- Gokaldas Exports – Prominent garment exporter supplying fashion and activewear.
- Raymond Ltd. – Exports fabrics and apparel to premium U.S. retailers.
- Himatsingka Seide – Focuses on luxury and premium home textile products.
- Page Industries – Exports branded innerwear (Jockey) and leisurewear.
- Shahi Exports – India’s largest apparel exporter, serving top global brands.
- Arvind Ltd. – Supplies denim, fabrics, and apparel to global retailers.
Shifting Production to Bypass Tariffs :
To counter rising U.S. tariffs, many Indian exporters are exploring shifting part of their production to countries like Vietnam, Bangladesh, Indonesia, and Guatemala. These nations enjoy favorable trade agreements or lower duty rates with the U.S., making them attractive alternatives for manufacturing. By relocating or outsourcing certain processes, Indian companies hope to maintain price competitiveness and secure existing orders. While this approach may offer short-term relief, it is not without challenges—such as setting up new supply chains, ensuring consistent quality, and managing higher operational complexities.
Government Measures for Industry Survival :
The Indian government can play a crucial role in helping the textile and garment industry weather this storm. Accelerating trade negotiations for a Free Trade Agreement (FTA) or preferential trade pact with the U.S. is critical. Such agreements could restore competitive parity with countries like Vietnam and Bangladesh, which already enjoy lower tariff access. Expanding export incentives, such as enhancing the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, would help partially offset the tariff burden.
Equally important is the diversification of export markets. By promoting Indian textiles and garments in Europe, the Middle East, Japan, and Latin America, exporters can reduce dependency on the U.S. Marketing assistance, subsidies for international trade fair participation, and targeted branding campaigns could open new revenue streams.
Infrastructure and logistics reforms will also be key to improving cost competitiveness. Faster port clearances, lower container freight costs, and simplified compliance procedures can significantly enhance efficiency. The government can further support the sector by facilitating overseas joint ventures or manufacturing setups in low-tariff countries to help Indian brands retain orders.
Finally, encouraging investments in innovation, technical textiles, and sustainable manufacturing practices will ensure that Indian exporters remain attractive to global buyers. Eco-friendly fabrics, advanced material technologies, and smart textiles can provide a competitive edge that goes beyond price, enabling long-term resilience for the industry.
Remarks :
India’s textile and garment industry stands at a critical juncture. The U.S. market offers enormous potential, but steep tariffs threaten to erode competitiveness. A coordinated response—combining government policy support, strategic business decisions, and relentless innovation—will be essential for protecting this vital sector, its revenues, and the millions of jobs it sustains.
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