India stands to benefit significantly from the US’s recent decision to increase tariffs on several competing countries. This move is already reflecting in the stock market, with companies like Alok Industries, Vardhman Textiles, Indo Count Industries, Trident, and KPR Mill showing gains, although some pared back by market close.
Key export areas where India may see gains include:
- Rubber and Articles: Thailand, which held a 15.16% share of US rubber imports in 2024, will be affected by the new tariffs. India, in fourth place with a 2.93% share, exported $1.06 billion worth of rubber goods and could now see greater opportunities.
- Footwear and Processed Meat/Fish Products: Indonesia’s elevated tariffs are expected to benefit Indian exporters in these categories.
In knitted and crocheted apparel, Vietnam and Cambodia currently lead with 17.99% and 5.99% market shares respectively, while India holds a 5.09% share with $2.41 billion in exports in 2024.
Mithileshwar Thakur, Secretary General of the Apparel Export Promotion Council (AEPC), noted that India’s competitiveness improves mainly in natural garments, not synthetics, unless the reciprocal tariff under the upcoming Bilateral Trade Agreement (BTA) with the US is lowered from 26% to around 15%. Such a reduction could significantly boost India’s position across both garment types.
Meanwhile, Bangladesh’s competitive edge may erode further after its expected graduation from the Least Developed Countries (LDC) group in 2026, which would revoke its preferential trade terms. For instance, in the EU market, Bangladesh may face new tariffs up to 12%, matching those already faced by Indian exporters.
Exporters’ Perspective:
- Ronak Chiripal, Promoter of Chiripal Group, highlighted growing interest from US and UK brands in sourcing from India, citing Indian textiles’ scale, compliance, and product capability.
- KM Subramanian, President of the Tiruppur Exporters’ Association, said Indian factories are already operating at 90%+ capacity, buoyed by global order shifts and the India–UK FTA.
- Sammir Dattani, Executive Director at Sanathan Textiles, noted advantages for Indian yarn exporters, especially in polyester and cotton.
- Prabhu D from the Indian Texpreneurs Federation stated that India is already among the fastest-growing apparel exporters to the US, with a CAGR of 3.8%, closely trailing Cambodia’s 3.9%.