WHAT?
- From August 27, 2025, the US imposed a 50% tariff on Indian goods, hitting $48 billion exports.
- Sectors worst affected:
- Textiles & Apparel (USD 10.3 bn)
- Gems & Jewellery (USD 12 bn)
- Electrical & Mechanical Machinery (USD 9 bn)
- Plus: shrimp, leather, footwear, animal products, chemicals.
Apparel sector faces a 30–31% tariff disadvantage compared to Bangladesh, Vietnam, Sri Lanka, Cambodia, Indonesia. Industry says this could drive India “out of the US market.”
INDIA'S RESPONSE
India is shifting focus to 40 nations beyond the US, including:
- Developed markets: UK, Japan, South Korea, Germany, France, Italy, Spain, Netherlands, Canada, Australia.
- Emerging markets: Mexico, Russia, Poland, Turkiye, UAE, Belgium, among others.
- Together, these 40 countries import $590+ billion textiles/apparel annually.
- India’s current share: just 5–6%.
Targeted Approach
- Brand Positioning: “Reliable supplier of quality, sustainable, and innovative textiles.”
- Role of EPCs & Missions Abroad
- Market mapping and demand identification.
- Linking clusters (Surat, Panipat, Tirupur, Bhadohi) to overseas buyers.
- Leading participation in fairs, exhibitions, buyer-seller meets.
- Running unified Brand India campaigns.
- FTAs as Leverage: Using trade deals with UK, EFTA countries, and ongoing negotiations to offset tariff disadvantages.
- Guiding exporters on sustainability, certifications, compliance.
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