Indian Textile Exporters Turn to Europe Amid High U.S. Tariffs

New Delhi, Oct 14 (KNN) Indian textile exporters are actively diversifying into European markets as steep U.S. tariffs—reaching up to 50 per cent—hit their shipments. 

Industry executives said many exporters are now focusing on meeting the European Union’s tougher standards on chemicals, labeling, and ethical sourcing while offering discounts to retain American buyers.

The United States, which accounted for nearly 29 per cent of India’s USD 38 billion textile and apparel exports in the fiscal year ending March 2025, recently doubled tariffs on several Indian products. 

The move, introduced under President Donald Trump, placed Indian exports among the most heavily taxed in the U.S. market.

A Mumbai-based garment exporter said his firm is prioritizing expansion into the EU and hopes for a swift trade agreement between India and the bloc. “An early deal would boost exports significantly,” he said, reported Business Standard.

Trade negotiations between India and the EU have reached an advanced stage, with both sides aiming to sign a free trade pact by the end of the year. 

The EU is currently India’s largest trading partner in goods, with two-way trade reaching USD 137.5 billion in the fiscal year ending March 2024—an increase of nearly 90 per cent over the past decade.

According to Rahul Mehta, chief mentor of the Clothing Manufacturers Association of India, many exporters are upgrading their production units to comply with EU standards. 

“We are not just looking at survival but long-term sustainability,” Mehta said, noting a growing desire to reduce dependence on the U.S. market.

However, challenges persist. Vijay Kumar Agarwal, chairman of Mumbai-based Creative Group, said his company may relocate operations to Oman or Bangladesh if U.S. tariffs remain high. “If this continues, we could lose up to 7,000 of our 15,000 workers,” he warned.

(KNN Bureau)