India Eyes Apparel Export Surge To US As Rivals Face Tariff Hurdles
India is poised to benefit from shifting trade dynamics as key Asian apparel exporters such as Bangladesh, Cambodia, and Indonesia face higher tariffs on exports to the United States, according to a recent report by the State Bank of India (SBI).
The report suggests that India, currently holding a 6% share of the US apparel import market, could gain an additional 5% if it capitalizes on the trade disruption. This shift could contribute an estimated 0.1% increase to India’s GDP, offering a significant boost to the country’s textile and garment sector.
The SBI analysis notes that India has a Revealed Comparative Advantage (RCA) in textiles and is already a strong exporter of apparel and accessories to the US. However, it has traditionally faced stiff competition from Bangladesh, Cambodia, Vietnam, and Indonesia.
Of these, only Vietnam currently enjoys a more favorable tariff structure, while the others are now facing increased trade barriers, creating an opportunity for India to capture market share.
The report draws on 2024 US import data, which shows that apparel and accessories dominate exports from these countries: 88.2% of Bangladesh’s exports to the US, 30.8% of Cambodia’s, and 15.3% of Indonesia’s fall under this category.
In addition to apparel, SBI highlights export growth potential in agriculture, livestock products, metal scrap, and processed foods, particularly in markets impacted by changing US trade policies.
