India's Textile and Leather Exporters Anticipate US Order Revival with Tariff Reductions
CHENNAI: India's textile, apparel, and leather exporters are forecasting a sustained recovery in orders from the United States, driven by anticipated tariff reductions under the proposed India–US trade deal. Industry representatives have expressed optimism that this strategic move will restore competitiveness, enhance profit margins, and revive export volumes that have faced significant pressure over the past year.
Enhanced Competitiveness in Global Markets
Textile and apparel exporters now expect increased sourcing by global brands, as India is poised to enjoy one of the lowest tariff regimes among major Asian manufacturing hubs. This development provides a marginal advantage over key competitors, including Bangladesh, Sri Lanka, Vietnam, and China. The tariff relief is anticipated to create a more level-playing field, particularly benefiting small and medium exporters clustered in regions such as Surat, Gurugram, and Tirupur.
Prabhu Dhamodharan, convenor of the Indian Texpreneurs Federation, highlighted that sourcing interest from the US for Indian products is on the rise, with exports likely to improve steadily. He projected, "Apparel and home textile exports will witness month-on-month double-digit growth starting from the 2026–27 fiscal year, potentially lifting the monthly apparel export run rate to $1.5 to $1.6 billion, up from the current $1.3 billion."
Level-Playing Field for Apparel Exporters
A Sakthivel, chairman of the Apparel Export Promotion Council, emphasized that improved trade terms would significantly enhance the competitiveness of Indian apparel products in the US market. This sentiment is echoed across the sector, as exporters look forward to reclaiming lost ground and expanding their market share.
Double Boost for Leather Sector
The leather industry has welcomed the US decision to reduce tariffs to 18%, terming it a "double dhamaka" following India's recent strategic trade deal with the European Union. Israr Ahmed, former vice-president of the Federation of Indian Export Organisations (FIEO) and managing director of the Farida Group, noted that exporters had previously absorbed the impact of high tariffs by offering discounts of 20–30%.
Ahmed explained, "With the US now reducing tariffs on Indian goods to 18%—a rate lower than those faced by key South Asian competitors like Bangladesh and Vietnam—these heavy discounts are no longer necessary. This adjustment will help restore pricing structures and improve margins."
Recovery and Growth Prospects
Rafiq Ahmed, chairman of Kothari Industrial Corporation, acknowledged that competition in the US market has intensified over the past year but expressed confidence that long-standing relationships would aid Indian exporters in regaining lost ground. He stated, "Orders from the US, which declined over the past year, are expected to start flowing again, signaling a positive turnaround for the industry."
Yavar Dhala, vice-president of the Indian Shoe Federation and CEO of Infinite Leather, projected a significant increase in India's share of leather exports to the US. He estimated that the share could rise from about 22% to nearly 30% this year, adding that factories operating fewer days due to high tariffs might return to a six-day work week, further boosting production and export capabilities.
Overall, the proposed tariff reductions under the India-US trade deal are seen as a pivotal step toward revitalizing India's export sectors, fostering economic growth, and strengthening trade ties between the two nations.
