India anticipates potential export gains in sectors such as apparel, rubber, footwear, processed foods, and meat products to the US, beginning August 1, as the Trump administration imposes steep tariffs—up to 36%—on 14 countries including Bangladesh, Thailand, Cambodia, Japan, and South Korea. The actual benefit for India will depend on the final US tariff structure and the outcome of an interim bilateral trade agreement (BTA) between India and the US.
The proposed tariffs include a 35% increase on Bangladesh’s exports and 36% on Thai and Cambodian goods, while Indonesia faces 32% and Vietnam 20%. India, on the other hand, is subject to a base tariff of 10%, pending any changes from the upcoming BTA. Under current estimates, India’s total apparel tariffs may remain around 25% or lower, while Bangladesh could see duties reaching up to 50%, and Cambodia 35%.
Indian textile stocks surged up to 17.1% on the day the tariff hike was announced, though some retraced gains by market close. Notable gainers included Alok Industries, Vardhman Textiles, Indo Count Industries, Trident, and KPR Mill.
Thailand’s elevated tariffs could benefit Indian rubber exports—Thailand currently leads the US market in this category with a 15.16% share, while India is fourth with 2.93%. Similarly, higher tariffs on Indonesian goods may help India in processed meat, fish, and footwear exports.
In apparel (excluding knitwear), Bangladesh holds a 13.15% US market share. India exported $2.5 billion in this segment in 2024 but wasn’t in the top three. In knitwear, Vietnam leads with 17.99%, followed by Cambodia at 5.99%, while India holds a 5.09% share with $2.41 billion in export value.
AEPC Secretary General Mithileshwar Thakur noted that India faces strong competition from Bangladesh and Vietnam, especially in synthetic garments. However, if India’s reciprocal tariff under the BTA is reduced from 26% to 15%, the competitiveness of both natural and synthetic garments would improve significantly, opening major opportunities with US brands.
Yet, industry analysts caution that if the tariff difference between India and Bangladesh is only marginal (3–4%), the advantage may not be substantial. Bangladesh’s graduation from Least Developed Country (LDC) status in 2026 will remove EU tariff preferences and bring its apparel duties closer to India’s current 12%.
Ronak Chiripal, promoter of Chiripal Group, said American and British brands are actively diversifying from China and Bangladesh, and India—with its manufacturing scale and product range—is poised to fill the gap.
The US was the destination for 28.5% of India’s $10.5 billion textile and apparel exports in 2024. In contrast, Bangladesh exported $7.34 billion worth of garments to the US, making it a crucial market. Currently, Bangladesh holds 9% of the US RMG market, while India holds 6%.
Tiruppur Exporters’ Association President KM Subramanian highlighted that India’s knitwear hub is operating at over 90% capacity, driven by the India–UK FTA and global supply shifts. Tiruppur aims to double its knitwear exports from ₹45,000 crore to ₹1 lakh crore by 2030, with the US accounting for 35% of its export value.
Sammir Dattani, Executive Director of Sanathan Textiles, stated that India’s yarn industry is benefiting from the tariff changes, especially in categories like activewear, athleisure, and sportswear.
Indian Texpreneurs Federation convenor Prabhu D emphasized that India was already a fast-growing apparel exporter to the US, with a 3.8% CAGR in recent years—second only to Cambodia (3.9%) and ahead of Vietnam and Bangladesh.