As the United States considers escalating tariffs on Chinese imports, the Federation of Indian Export Organisations (FIEO) has unveiled a strategic initiative to significantly expand India’s presence in the US market, with a strong focus on textiles and apparel.
The FIEO has pinpointed five key sectors ripe for rapid growth, including apparel, leather goods, toys, electronics, and organic chemicals. Notably, textiles and apparel exports to the US reached approximately $7.5 billion in 2023-24, presenting a substantial foundation for expansion. This sector, along with leather articles which accounted for $682 million in exports, is expected to benefit significantly from the anticipated shift in US sourcing.
FIEO Vice-President Israr Ahmed emphasized the timeliness of this strategy, stating that ongoing discussions surrounding tariffs are prompting US buyers to actively diversify their supply chains. This presents a golden opportunity for Indian manufacturers, particularly in the textiles and apparel sector, where existing production capacity and the development of new facilities position them to meet increased demand.
Adding to this advantageous scenario, Ahmed highlighted the relocation of numerous apparel firms from Bangladesh to India, driven by political instability in the former. This influx of expertise and resources further strengthens India’s textile and apparel industry, enhancing its ability to cater to the US market.
The FIEO’s strategy involves seeking government support through the Market Access Initiative (MAI). This initiative will be instrumental in organizing events designed to enhance the visibility of Indian products among US buyers. The FIEO advocates for a dedicated three-year focus on the US market under the MAI to maximize the impact of these efforts.
While the potential for growth is significant, the FIEO acknowledges existing challenges within the sector, including liquidity constraints and reduced financing from banks. Addressing these issues will be crucial for realizing the full potential of this export-focused strategy. However, the confluence of tariff uncertainties, shifting supply chains, and the relocation of apparel manufacturing to India create a favourable environment for substantial growth in Indian textile and apparel exports to the US.
