Indian Garment Makers Rethink US Dependence After Tariff Shock
Indian garment manufacturers are reducing their dependence on the United States following tariff increases that disrupted export orders and squeezed profit margins. Companies such as Orient Craft, which previously sent 84% of its sales to the US, are now expanding into Britain, Europe and India’s domestic market. The company has reduced its US exposure to less than 10%, reflecting a broader shift among exporters seeking to avoid risks associated with changing American trade policies.
Several major manufacturers are now targeting European markets to strengthen their export business. Gokaldas Exports, one of India’s largest garment exporters, plans to increase Europe’s share of its revenue to 25%-30% over the next three to five years, while reducing its dependence on the US. Between April and August 2026, India’s textile, apparel and home-furnishing exports to the US declined 9.8% year-on-year to $4 billion. Meanwhile, exports to other markets increased by 3.7% to $15.2 billion. Trade agreements with the UK and the proposed EU deal are also creating new opportunities for Indian exporters.
Manufacturers are additionally exploring lower-cost production hubs such as Ranchi in Jharkhand, where government subsidies, easier land access and workforce availability are attracting garment factories. Companies are also looking towards India’s domestic apparel market, valued at $150 billion and growing annually by 7%-8%, as a buffer against international trade uncertainty. Although exporters are not abandoning the US market entirely, industry leaders say diversifying destinations, buyers and products is becoming a long-term strategy for India’s garment industry.
Pic courtesy: google/ images are subject to copyright
