National/International/ Business Desk
08 August
Tv10punjab
The recent decision by the United States to raise tariffs on Indian goods has created major challenges for Indian textile manufacturers. Companies supplying clothing to large American retailers are now under pressure. Many buyers are asking them to either absorb the higher tariff costs or move their production out of India.
Some leading US retailers have already stopped placing new orders from India. To retain their clients, Indian textile exporters are considering shifting production to countries such as Bangladesh, Vietnam, Indonesia, and Guatemala, which are not affected by the new US tariffs.
Earlier this year, India’s lower tariffs compared to other Asian competitors were seen as a growth opportunity in the $16 billion apparel export market. However, with the tariff on Indian goods now increased to 50%, compared to 20% for Bangladesh and Vietnam and 30% for China, the competitive advantage has disappeared.
For many exporters, the US market accounts for nearly half of their business. While a few buyers are willing to continue sourcing from India if costs are shared, industry leaders believe absorbing such high tariff expenses is not practical. The sector now faces tough decisions to protect its business and workforce.