Indian apparel exporters are increasing their production capacities to capitalize on the United States' decision to impose a 10 per cent duty on Chinese imports. These exporters anticipate orders from Europe will improve, contingent on a potential resolution to the Russia-Ukraine conflict. Additionally, they have been receiving orders from global brands that previously sourced from Bangladesh, due to political uncertainties and law-and-order issues in that country.
Manufacturing units in India's largest garment exporting hub, Tiruppur have doubled their capacity in the past six months to meet the rising demand. Units with 500 machines have increased to 1,000, and larger units have increased from 5,000 to 10,000 machines, states KM Subramanian, President, Tiruppur Exporters Association.
The 10 per cent tariff will raise the cost of Chinese textiles and apparel for US consumers, potentially slowing US imports from China and creating opportunities for India and other textile exporting nations. Comprising approximately 28,000 manufacturing units and employing 800,000 people, Tiruppur contributes 55 per cent of India's knitwear exports. It is receiving orders from US brands like GAP, Carter's, Target, and Walmart, as well as European and Australian giants such as Next, Duns, and Woolworths.
Sanjay Jain, Chairman, ICC National Textile Committee, notes, further tariffs on Chinese imports would benefit the Indian apparel and textile sector. He is setting up a new plant in West Bengal to export 2.5 million to 3.5 million casual wear pieces per month. The plant is expected to be operational by July-August.
Facilitated by the US intervention, a resolution to the Russia-Ukraine confloict would boost orders from Europe, opines Jain. The impending free trade agreement between India and the European Union will further stimulate garment and textile exports, he adds
Currently, China accounts for nearly a quarter of US textile and apparel imports. In the January-November period of 2024, US imports of Chinese textiles and apparel totaled $99.125 billion. Second-largest garment supplier after China, Bangladesh faces ongoing political instability, positioning India to capture a larger market share. The apparel industry anticipates a 10-15 per cent growth in exports in the next fiscal year, following an 11.6 per cent increase in the April-January period of fiscal 2025.
