India–US trade deal: Textile, leather players see revival in volumes

CHENNAI: India’s textile, apparel and leather exporters are expecting a sustained recovery in orders from the US, following tariff reductions under the proposed India–US trade deal. Industry representatives said the move will restore competitiveness, improve margins and revive volumes that were under pressure over the past year.

Textile and apparel exporters are now expecting an increased sourcing by global brands as India will now enjoy one of the lowest tariff regimes among major Asian manufacturing hubs, with a marginal advantage over competitors, such as Bangladesh, Sri Lanka, Vietnam and China. The tariff relief is expected to create a level-playing field, particularly for small and medium exporters in clusters such as Surat, Gurugram and Tirupur.

Prabhu Dhamodharan, convenor of the Indian Texpreneurs Federation, said sourcing interest of US from India is rising and exports are likely to improve steadily. “The apparel and home textile exports will witness month-on-month double-digit growth from the 2026–27 fiscal, lifting the monthly apparel export run rate to $1.5 to $1.6 billion, from the current $1.3 billion.”

A Sakthivel, chairman of the Apparel Export Promotion Council, said improved trade terms would significantly enhance the competitiveness of Indian apparel products in the US market.

The leather sector has termed the US decision to reduce tariffs to 18% a “double dhamaka”, coming soon after India’s 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, said exporters had been absorbing the impact of high tariffs by offering discounts of 20–30%. “With the US now reducing tariffs on Indian goods to 18%— a rate lower than those faced by key South Asian competitors, such as Bangladesh and Vietnam — these heavy discounts are no longer necessary,” he said, adding that this would help restore pricing and margins.

Rafiq Ahmed, chairman of Kothari Industrial Corporation, noted that competition in the US market has intensified over the past year but said long-standing relationships would help Indian exporters regain lost ground. “The orders from the US, which got reduced in the past one year, will start flowing,” he said.

Yavar Dhala, vice-president of the Indian Shoe Federation and CEO of Infinite Leather, said India’s share of leather exports to the US could rise from about 22% to nearly 30% this year, adding that factories operating fewer days due to high tariffs could return to a six-day work week.