A lot has been said about the 50% tariff on Indian apparel exports.
From the end of August 2025, every piece of knitted or woven apparel we send to America will attract a duty of more than 60%. This is not just a number on paper, it is a heavy blow to a US $5.4 billion export market, or US $8.4 billion if we include textiles.
If even half of this business slips away, the impact will be huge, with more than two lakh jobs at risk and downsizing across hundreds of factories. These aren’t just statistics. They’re people, families, entire ecosystem whose lives depend on this industry.
Still, if there is one thing our industry has shown time and again, it is resilience. I see manufacturers moving quickly, shifting production to countries with lower tariffs, looking for new opportunities in Europe, Japan, Australia, Africa, Latin America and West Asia and also relying more on India’s own US $120 billion domestic market.
Many are broadening their product range, sharpening efficiency and holding on to the fact that US retailers with a big presence in India can’t just walk away from sourcing here altogether. The government scrapping duty on cotton imports till September 30 is a welcome relief too, though clearly a lot more support will be needed to steady the ship.
For a deeper look, I would also encourage you to read our detailed story on tariff impact and what the industry is doing to respond.
We can’t control trade barriers. What we can control is how efficiently we can stay ahead by adopting technology. That is why I am looking forward to our coverage of CISMA in China in September. We’ll be bringing you first-hand insights on the machines, systems and digital tools that are pushing the limits of speed, precision and efficiency in apparel manufacturing.
In the lead-up, we’ll also share previews of the innovations set to debut at the event, so you know what to watch out for. The idea is to identify where
the next big leap in efficiency and productivity will come from.
Soon after, our attention shifts to Paris, where Texworld will give us a sense of the fabrics shaping the future. I am particularly keen to track what is happening in the high performance activewear segment. This is one of the fastest growing categories worldwide and it is an area where Indian manufacturers must step up if we are to stay competitive in global supply chains.
The reality is that India’s activewear market, though growing steadily, is still only about Rs. 55,000 crore (US $6.5 billion), compared to China’s massive US $60 billion sportswear market. That difference alone explains why China has been able to justify big investments in fabric R&D and machinery. Today, over 70% of the high-performance fabric we use in India is imported and we operate with fewer than 400 warp knitting machines, while China runs with more than 7,000. The gap is clear even on the export front. For example, Bangladesh exported US $2.8 billion worth of sportswear in 2023, while India still lags far behind.
In our October issue, we’ll be sharing deeper insights into how Indian players can close the gap and seize this growing market!
