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regular-article-logo Monday, 18 November 2024

Trump edge to Indian textile exports as US President-elect plans to reduce dependency on China

Trump's coming second term as the US President next year coincides with the political turmoil in Bangladesh, a major textile exporter, with top global fashion brands diversifying their sourcing from India's neighbour

R. Suryamurthy New Delhi Published 18.11.24, 10:51 AM
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Textile exporters are optimistic about the return of Donald Trump to the White House as the US President-elect's plan to reduce dependency on China will enable them to prise out a greater share of the American export market.

Trump's coming second term as the US President next year coincides with the political turmoil in Bangladesh, a major textile exporter, with top global fashion brands diversifying their sourcing from India's neighbour.

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"With the new administration, the Indian textile and apparel (T&A) industry is optimistic about expanding its role as an alternative supplier to China," said Rakesh Mehra, chairman of the Confederation of Indian Textile Industry (CITI).

The US remains a vital market for Indian textiles, accounting for 27 per cent of the sector’s exports in 2023.

Recent data also highlights robust growth: in October 2024, textile exports rose 11.56 per cent year-on-year, while apparel exports surged 35.06 per cent.

Cumulatively, T&A exports to the US between April and October 2024 grew 7.08 per cent compared with the same period in 2023.

“This performance outpaces key competitors,” Mehra noted, pointing to China’s modest 2 per cent growth, Vietnam’s 0.4 per cent increase and a 2.2 per cent decline in Bangladesh’s exports. “India’s enhanced performance reflects its growing preference among US buyers,” he said.

However, high US tariffs on Indian textiles — up to 32 per cent for certain apparel categories — remain a significant obstacle."CITI is hopeful the Trump administration will collaborate with India to revise tariffs, enabling the country to solidify its position as a key supplier of quality textile and apparel products to the US," Mehra said.

The Apparel Export Promotion Council (AEPC) is also bullish about Trump's return. AEPC chairman Sudhir Sekhri highlighted India’s growing presence in countries with free trade agreements (FTAs) such as South Korea, Japan and Australia. He noted that international buyers increasingly view India as a reliable alternative to Bangladesh and China.

AEPC secretary-general Mithileshwar Thakur said: "The sector requires continued funding, training, and investment to address current trade disruptions and escalating costs," AEPC secretary-general Mithileshwar Thakur said.

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