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The Hindu
2 hours ago
- Business
- The Hindu
U.S. tariffs: Garment exporters fear slowdown in orders
Apparel exports from India to the U.S. are expected to slowdown till a bilateral trade agreement (BTA) is signed between the two countries. Sudhir Sekhri, chairman of AEPC, said in a release that the U.S. tariff of 25% is higher than what was expected. The BTA should hopefully be concluded by October-December 2025. 'The penalty is a grey area and we hope the government will negotiate this with the U.S.,' he said. The U.S. held 33% share in India's total garment exports in 2024. India's presence in the U.S. garment import market has grown, with its share increasing from 4.5% in 2020 to 5.8% in 2024, he pointed out. This steep tariff increase puts immense pressure on Indian exporters, many of whom operate on wafer-thin margins. Exporters may be forced to either absorb the additional costs, hurting profitability, or pass them on to U.S. buyers, which can further dampen demand. The impact will be particularly severe on MSMEs and labour-intensive units, said executive director of the Cotton Textiles Export Promotion Council Siddhartha Rajagopal. According to A. Ravikumar, executive director, Manmade Fibre and Technical Textiles Export Promotion Council (MATEXIL), the development had created considerable uncertainty among U.S. buyers, who are currently unclear about the final tariff structure that will be applicable. As a result, many importers have adopted a cautious approach and are holding back on placing new orders.
News18
8 hours ago
- Business
- News18
Apparel exports to US may slow down due to Trumps 25 pc tariff: AEPC
New Delhi, Jul 31 (PTI) The announcement of US President Donald Trump to impose a 25 per cent tariff plus penalty from August 1 on Indian goods may impact apparel exports from India, AEPC said on Thursday. It said that the announcement of an interim trade deal between the two countries would help to boost exports, Apparel Export Promotion Council (AEPC) said in a statement. The tariff of 25 per cent is higher than expected, but the industry should not be overly worried as long as Vietnam and Bangladesh tariffs are not revised downward from the current levels, AEPC Chairman Sudhir Sekhri said. 'Apparel exports are expected to slow down till the announcement of an interim trade agreement, hopefully to conclude in October-December 2025. The penalty is a grey area and we hope the Government of India will negotiate this with the US before 1st August 2025," he said. The US is a key market for Indian ready-made garments' exports, with the US holding a share of 33 per cent in India's total garment exports in 2024. India's presence in the US garment import market has grown, with its share increasing from 4.5 per cent in 2020 to 5.8 per cent in 2024, and it ranks fourth among the top RMG exporters to the United States. China continues to be the top exporter, with a market share of 21.9 per cent in 2024, down from 27.4 per cent in 2020. Together, China, Vietnam, and Bangladesh supplied 49 per cent of US apparel imports in 2024. The top three most exported products by India to the USA are cotton t-shirts, women's or girls' dresses of cotton, and babies' garments of cotton. PTI RR RR SHW view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Economic Times
a day ago
- Business
- Economic Times
Tariff clock ticks away: Indian exporters dread what Trump might bring two days from now
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads With Trump 's tariff deadline almost at hand, Indian exporters are facing a greatly uncertain landscape. Orders are being held back as businesses await clarity on the US President's next steps, the Times of India reported on July 30. According to Sudhir Sekhri, chairman of the Apparel Export Promotion Council, the situation remains quite store shelves are running low, but many buyers are delaying production until the tariff situation becomes clearer, Sekhri told ToI's the deadline for tariffs draws near, the focus remains on how the unfolding developments will shape the future of Indian exports. With discussions set to resume on August 25, there remains a glimmer of hope for a last-minute resolution. However, for now, uncertainty reigns, leaving exporters in a precarious position as they navigate the complexities of international Bhansali, the chairman of the Gem & Jewellery Export Promotion Council, shared a similar sentiment. While he remains hopeful for a favourable outcome for India, he acknowledged that the current tariff uncertainty has already affected order some shipments are being processed at a 10% duty, many buyers are holding off, having stocked up during a shipping rush in concerns extend beyond the apparel and jewellery sectors. Satish Wagh, chairman of Chemexcil, noted that the marginal growth of just 0.1% in exports to the US during the April to June 2025 period indicates stagnation, likely due to the looming tariff has been a notable decline in shipments of agrochemicals and dye intermediates, suggesting that buyers may be reconsidering their inventory needs or renegotiating contracts in light of potential price the challenges, trade officials remain cautiously optimistic. Ajai Sahay, director general of Fieo, pointed out that while the delay in the India-US Bilateral Trade Agreement (BTA) is concerning, it is unlikely to hinder long-term trade exporters and importers recognise that a deal will eventually be reached and are willing to absorb short-term costs in anticipation of better conditions, Sahay garment sector is particularly strained. China has ramped up its exports to Europe, capitalising on the tariffs imposed by the US, which has made it harder for Indian exporters to informed that during this lean season from May to August, Indian exporters typically operate at around 70% capacity. However, the current situation has reduced this to about 50%, further complicating matters.
Time of India
2 days ago
- Business
- Time of India
Orders on hold, exporters brace for uncertain times
NEW DELHI: With barely 48 hours to go for US tariffs to kick in and no deal with India so far, exporters are keeping close tabs on duty announcements, not just for India but others as well, as orders are on hold due to uncertainty around US President Donald Trump's next move. "It's an unpredictable situation. If there is some announcement that benefits India, orders will start flowing. Shelves are empty (in American stores) and the inventory that was built up is almost over. Orders have been placed with us, but buyers have said we should go into production only after uncertainty lifts," said Sudhir Sekhri, chairman of Apparel Export Promotion Council. Gem & Jewellery Export Promotion Council chairman Kirit Bhansali is hopeful of India managing a good deal but acknowledges that the tariff uncertainty has impacted orders. "Some consignments are going at 10% duty but buyers are waiting as they still have some stocks after the rush to ship goods in April," he said. Bhansali argues that American retailers, who enjoy 60-70% margin compared to 4-5% for Indian suppliers of loose diamonds, will also be impacted by high tariffs. Govt officials have argued that there is scope for American sellers of jewellery and pharma to absorb the tariff impact. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like I Asked ChatGPT What Humanity Will Achieve In The Next 30 Years — Here's What It Said Liseer Undo "The marginal growth of just 0.1% in exports to the US, $663.1 million in April-June 2025 versus $662.5 million in the same period in 2024, suggests stagnation, likely due to tariff announcement by US govt resulting in uncertainty. There has been sharp decline in US bound shipments of agrochemicals & dye intermediates, pointing to possible order deferrals or cautious buying... Such trends suggest that buyers may be re-evaluating inventory needs or renegotiating contracts especially in price-sensitive categories," said Satish Wagh, chairman of Chemexcil. Although the prospects of an early trade deal remain dim, with USTR Jamieson Greer saying that further talks are required, officials are not ruling out the possibility of a last-minute breakthrough, even as the next round of talks are scheduled to begin on Aug 25. "The delay in the India-US BTA is unlikely to dampen long-term trade prospects. Both exporters and importers understand that the agreement is a matter of when, not if - and are willing to absorb short-term costs in anticipation of stronger, more predictable gains once the deal is in place," said Ajai Sahay, director general, Fieo. For garment exporters, it's been a double whammy as China has increased its exports to Europe to offset the impact of higher tariffs in the US, resulting in Indian exporters being edged out. While some orders from American buyers have come to Indian exports, it has not made up for the loss in Europe, said Sekhri. "It is lean season for us (May-Aug) and we usually operate at 70% capacity. Now we are operating at about 70% of that 70%, which means around 50% capacity," he said. Stay informed with the latest business news, updates on bank holidays and public holidays . Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
The Hindu
24-07-2025
- Business
- The Hindu
Indian home textile sector to double its share in the UK market
The Indian home textile sector is likely to see its share in the UK market double because of the India–UK Comprehensive Economic and Trade Agreement (CETA). Vijay Agarwal, chairman of the Cotton Textiles Export Promotion Council (Texprocil), said, 'The India–UK FTA marks a momentous milestone following three years of rigorous negotiations. It is poised to provide a major impetus to labour-intensive sectors such as textiles —particularly home textiles— currently facing a 12% tariff in the UK. With duty-free access, India has the potential to double its share in the UK home textiles market within the next three years. Moreover, with 99% of goods now qualifying for duty-free entry, Indian exporters will gain a substantial competitive advantage in the UK market.' On the investment side, the trade agreement is expected to encourage greater bilateral cooperation between Indian and UK companies, facilitating joint ventures, innovation partnerships, and market development initiatives, he said. According to Sudhir Sekhri, chairman, AEPC, 'This deal will usher a new era of garment trade with the UK. It will enhance market access, spur investment and job creation in the garment sector.' 'The India- UK FTA will not only give competitive market access to the Indian apparel products in the UK market, but also increase the trust and reliability factor by streamlining customs procedures and mutual recognition of standards, thereby, reducing the compliance burdens for the Indian apparel exporters,' he added. The UK is a global fashion hub and the fifth largest garment importer of the world, buying $ 19.7 billion worth apparel in 2024. India exported $ 1.2 billion worth of garments emerging as one among top four suppliers to the UK last year. For most of the garment products, the duty to export to the UK is 9.6%. India mainly exports cotton-based garments such as t-shirts, ladies dresses, and babywear but lacks competitiveness in winter wear and MMF garments, the AEPC said. A. Sakthivel, vice-chairman of AEPC, added the agreement is a game-changer for the Indian textiles and apparel industry. The Powerloom Development and Export Promotion Council said a significant portion of synthetic and blended textiles, cotton fabrics, made-ups, and home furnishings will now have duty-free access to the UK market. K. Sakthivel chairman of Pdexcil, said the agreement marks a new era for Indian powerloom manufacturers and exporters. The elimination of tariffs on key textile products will significantly enhance the weaving sector's global competitiveness, allowing MSMEs to scale up exports and tap into premium markets across the UK. There will be zero-duty market access for a wide range of synthetic, blended, and cotton fabrics and improved market entry for value-added textile products such as bedsheets, curtains, and garments.
