Indian Garment Exporters See Recovery Wave As US Tariff Pressure Eases

Trade & Policy

Indian Garment Exporters See Recovery Wave As US Tariff Pressure Eases

India’s garment exporters are seeing early signs of demand revival after US tariff pressure eased sharply, improving sourcing sentiment among global buyers. Industry executives said order momentum is expected to strengthen in the second half of FY27, while revenue gains may become visible from October.

The sector had faced severe disruption after earlier US tariffs climbed to 50%, hurting India’s price competitiveness against Bangladesh, Vietnam and Cambodia. Tariffs are now reported near 10%, helping restore buying interest. Major exporters said fresh enquiries have increased and diverted orders are gradually returning.

Ratings agency estimates indicate apparel exporters could post 8% to 11% revenue growth in FY27, while operating margins may improve around 200 basis points year on year. Exporters are also diversifying into Europe, UK and Africa to reduce overdependence on the US market.

India’s textile and apparel exports stood at US$35.8 billion in FY26, despite a 2.21% decline, creating a lower base for recovery. Industry leaders say stable incentives, trade agreements and freight normalization will be critical to sustain momentum.

The sector had faced severe disruption after earlier US tariffs climbed to 50%, hurting India’s price competitiveness against Bangladesh, Vietnam and Cambodia. Tariffs are now reported near 10%, helping restore buying interest. Major exporters said fresh enquiries have increased and diverted orders are gradually returning.

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