US tariff shift opens new growth avenue for India’s apparel industry: CMAI

US tariff shift opens new growth avenue for India’s apparel industry: CMAI

The Clothing Manufacturers Association of India (CMAI) sees the recent US tariff changes as a major opportunity for India’s apparel sector. With higher tariffs imposed on key textile-exporting nations like Bangladesh and Vietnam, India gains a competitive edge, potentially enhancing its presence in the US market.

Santosh Katariya, President of CMAI, called the tariff revision a ‘pivotal moment’ for Indian manufacturers. "To fully capitalize, we must scale up production, drive product innovation, prioritize sustainability, and meet global compliance standards. A coordinated effort between industry and policymakers will be key to strengthening India’s global competitiveness," he stated.

Rahul Mehta, Chief Mentor of CMAI, highlighted the potential advantage, comparing it to Bangladesh’s 10-12 per cent duty relief in EU markets, which helped it outperform India in Europe. "Now, we have a similar, if not greater, advantage in the US market. If we fail to seize this opportunity, we will once again miss the ‘Bus of Opportunity’,” he warned.

However, CMAI cautioned that the new trade landscape presents challenges. With higher US tariffs, Bangladesh and Vietnam are expected to intensify their focus on alternative markets like the EU, UK, and Australia, heightening competition for Indian exports. These nations may also target India’s domestic market, increasing competitive pressure.

The apparel sector now stands at a critical juncture. Whether India emerges as a stronger global apparel powerhouse depends on how swiftly and effectively the industry and policymakers act to leverage this shifting trade dynamic.

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