Indian textile exporters turn to Europe, offer discounts to offset US tariffs

Indian textile exporters are searching for new patrons in Europe and providing discounts to present US clients to cushion the blow from steep US tariffs of as a lot as 50%, business executives stated. President Donald Trump doubled tariffs in August on Indian imports, putting them among the many highest for any buying and selling associate, and affecting items and produce starting from clothes and jewelry to shrimp.

A Mumbai-based garment exporter, who sought anonymity forward of signing export contracts, stated his firm was prioritising diversification into European Union markets and that an early commerce take care of the bloc would assist increase shipments from India.
Trade talks between India and the EU have entered a decisive section, as their groups work intensively to meet a year-end goal for signing a free commerce pact.

The EU is India’s largest buying and selling associate for items, with two-way commerce of $137.5 billion within the fiscal yr to March 2024, for a rise of almost 90% over the previous decade. Indian exporters are stepping up efforts to meet the EU’s harder requirements on chemical substances, product labelling, and moral sourcing, textile exporters stated.

Exporters are upgrading manufacturing amenities to meet these requirements, stated Rahul Mehta, whose web site describes him because the chief mentor of the Clothing Manufacturers Association of India. Exporters are additionally eager to cut back their dependence on the US, Mehta added.

The US was India’s largest marketplace for textiles and attire within the fiscal yr to March 2025, taking almost 29% of whole exports of roughly $38 billion. Some exporters have began providing discounts to retain US clients, stated Vijay Kumar Agarwal, chairman of Mumbai-based Creative Group, whose US exports make up 89% of its whole shipments.

If US tariffs proceed to chunk, the corporate may lose 6,000 to 7,000 of its 15,000 employees, and after six months could take into account shifting manufacturing to Oman or neighbouring Bangladesh, Agarwal stated.