India's Apparel Export Opportunity Amid U.S. Tariff Shifts

India's Apparel Export Opportunity Amid U.S. Tariff Shifts

India’s Garment Export Opportunity: A Time to Shine

With the US imposing new tariffs on countries like China, Vietnam, and Bangladesh, there’s an opportunity for India to boost its garment exports. These tariffs are expected to reduce apparel exports from these countries by around $24 billion, opening the door for others like India, Mexico, and Indonesia.

India is well-positioned to benefit due to lower tariffs, but to truly capitalize on this, it must improve its manufacturing competitiveness. Relying on tariffs alone isn’t sustainable — the key lies in becoming more efficient.

Challenges India must address:

Raw materials: Despite being a major cotton producer, India faces low cotton yields, high import duties, and expensive production costs.

Synthetic textiles: High tariffs and lack of scale make man-made fabric costly and slow to produce.

Labour issues: Rigid labour laws, limited overtime, and high wage premiums reduce productivity.

Steps India should take:

Remove import duties on cotton and synthetic fibres.

Reduce barriers in the synthetic textile value chain.

Reform labour laws to allow more flexibility and higher productivity.

Focus on boosting PM MITRA parks as apparel hubs.

Expand Production-Linked Incentive (PLI) schemes to include more fabrics and garments.

Finalize the India–US Bilateral Trade Agreement to further reduce tariffs.

With the right policy moves, India can double its apparel exports — currently stuck at $15–17 billion — and become a major global player in garment manufacturing. 

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