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Indian apparel industry stands to gain from US tariff hike: CMAI

The Clothing Manufacturers Association of India (CMAI) has highlighted a fresh growth opportunity for the Indian apparel industry, following the U.S. government’s recent move to raise tariffs on textile imports from major exporters like Bangladesh and Vietnam.

According to CMAI, this development could shift sourcing patterns in favour of India, offering Indian manufacturers a competitive edge in the American market. The association believes this change may significantly boost India’s position in global apparel trade.

Santosh Katariya, President, Clothing Manufacturers Association of India (CMAI), said, “The  U.S. tariff changes present a pivotal moment for India’s apparel industry. As global trade  dynamics shift, Indian manufacturers have a strong opportunity to expand their presence in  the U.S. market. However, to fully capitalise on this, we must scale up production, drive product innovation, prioritise sustainability, and meet global compliance standards. A well coordinated effort from both the industry and policymakers will be crucial to strengthening  India’s global competitiveness.”

Commenting on this development, Rahul Mehta, Chief Mentor, CMAI, stated, “On the  face of it, these Tariffs will be a huge opportunity for the Indian Apparel Industry. We have  always been pointing to the 10-12% duty relief for Bangladesh in the EU Markets as an  important reason for that country to race ahead of us in the EU market. Now, we will have the same huge advantage, if not more, in the US Market. So, I say, this change in tariffs will be a huge advantage for us. If not, Indian Textile Industry will once again miss the ‘Bus of Opportunity’ provided to us.

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While the development is promising, CMAI also cautioned that the shift may lead to intensified competition in other regions like the EU, UK, and Australia. Countries like Bangladesh and Vietnam, facing higher tariffs in the U.S., will intensify  their focus on alternative markets such as the EU, UK, and Australia, heightening competition for Indian exports.

Additionally, these nations are also likely to target the Indian domestic market more aggressively, increasing competitive pressures on Indian players.

With the industry at a strategic crossroads, CMAI has urged both the private sector and policymakers to collaborate and respond decisively to turn this window of opportunity into long-term growth.

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