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Time of India
4 days ago
- Business
- Time of India
Trump's new tariffs may open doors for India's textiles, but tough rivals remain in play
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The latest round of tariff announcements by US President Donald Trump has introduced fresh uncertainty into global textile trade, with Indian exporters remaining cautious despite an apparent edge over Bangladesh, which has been hit with a 35% duty, ToI are closely watching New Delhi's trade negotiations with Washington, as Trump claimed that the deal with Vietnam allows him to impose a 20% tariff, even though there may be concessions for specific product categories. The final outcome remains unclear as countries, including Bangladesh, are scrambling to rebalance the situation through talks with the US government."We need to watch how tariffs move. Buyers are a little confused at the moment," V Elangovan, managing director of Tirupur-based SNQS International, told ToI. He said the market is further complicated by competition from China. "Retailers have to fill their shelves. Last week, our merchandisers were in Shanghai, we could not compete because the Chinese were quoting better prices this year than last year. It is not clear how they can do so when the tariff for them is higher. We need more hand-holding from govt," he Indian products remain competitive in garments and home textiles, exporters and government officials have been pushing for zero duty access, but even if a trade deal is concluded, it appears unlikely that the Trump administration will roll back the baseline 10% tariff applied to all countries. Indian exporters currently face this 10% duty, which gives them an advantage over Bangladesh and Vietnam, but only if competing countries are not provided new categories like natural garments, where India has a traditional advantage, the cost disadvantage is relatively small, at 3–4%. However, for synthetic garments , Indian manufacturers face a larger cost gap of around 10–11%, mainly due to higher production costs, according to the Apparel Export Promotion Council (AEPC)."India, even with the existing reciprocal tariff rate (26% announced in April), will gain in export competitiveness vis-a-vis major garment exporting competing countries. Besides, we are quite hopeful of India striking a favourable trade deal which will further improve the competitiveness of India's apparel exports in all important US market... even a moderate reduction in the reciprocal tariff to around 15% could significantly improve our competitiveness across both natural and synthetic garment categories, thereby opening infinite export possibilities for India amid shifting global sourcing trends," said AEPC CEO Mithileshwar the current tariff rates—India at 26%, Vietnam at 20%, and Bangladesh at 35%—India is competitive against Bangladesh in the natural garments category but faces price pressure in synthetics. "It is looking good for us and a trade deal will help," said K M Subramani, president of Tirupur Exporters' the question remains whether Indian garment manufacturers are in a position to scale up production, particularly as many continue to hold back on investing in capacity of Indian textile firms, including Gokaldas Exports Vardhman Textiles , and Arvind Ltd , rose as much as 8.2% in intraday trading on Tuesday, July 8, following the US administration's announcement of the new 35% tariff on Bangladeshi apparel and textile exports. The increase was seen as a reaction to the opportunity created by Bangladesh's tariff new 35% tariff, which takes effect from August 1, represents a slight reduction from the earlier proposed 37% announced in April. Despite this, it remains significantly above the standard 10% base rate and is expected to dent Bangladesh's position in the global apparel on the other hand, continues to face a 10% average tariff on textile exports to the US, although some product segments attract duties as high as 26% due to differences in classification and product type. This ongoing shift in global tariff structures is likely to change the competitive equation, especially if India's trade negotiations with the US lead to a reduction in players are expected to monitor closely any movement on a potential bilateral trade agreement between India and the US. Last week, an Indian delegation returned from Washington after holding discussions. A favourable outcome in the form of reduced tariffs on Indian textile exports could help improve pricing power and market share in the US, which remains a critical market for the sector.(With ToI inputs)
Time of India
4 days ago
- Business
- Time of India
Textiles exporters face fresh trade uncertainty amid Trump's latest announcements
NEW DELHI: US President 's latest tariff announcements have resulted in fresh uncertainty, with buyers expected to go slow on new orders. While textiles exporters seem to have got an advantage over Bangladesh, which has been slapped with 35% duty by Trump, industry is keeping close tabs on India's bilateral trade deal with the US as the American president has claimed the agreement with Vietnam allows him to impose a 20% tariff, although there may be product-specific concessions. Tired of too many ads? go ad free now In any case, the final word is not out on where tariffs settle in the coming weeks, with countries, including Bangladesh, once again rushing to Washington to rebalance the equations. "We need to watch how tariffs move. Buyers are a little confused at the moment," said V Elangovan, managing director of Tirupur-based SNQS International. What is adding to the complications is China. "Retailers have to fill their shelves. Last week, our merchandisers were in Shanghai, we could not compete because the Chinese were quoting better prices this year than last year. It is not clear how they can do so when the tariff for them is higher. We need more hand-holding from govt," he added. Govt and industry has been pushing for zero duty for garments and home textiles, where Indian products are competitive, although it is unlikely even if a trade deal is worked out as the Trump administration has refused to remove the 10% baseline tariff applicable on all countries. At 10%, Indian exporters are seen to be better off than rivals, provided subsidies are not doled out to Chinese manufacturers. In natural garments, where India has traditional strength, the cost disadvantage is relatively small, 3-4%. However, in synthetic garments, the gap widens to 10-11% due to higher production costs, Apparel Export Promotion Council (AEPC) said. "India, even with the existing reciprocal tariff rate (26% announced in April), will gain in export competitiveness vis-a-vis major garment exporting competing countries. Tired of too many ads? go ad free now Besides, we are quite hopeful of India striking a favourable trade deal which will further improve the competitiveness of India's apparel exports in all important US market... even a moderate reduction in the reciprocal tariff to around 15% could significantly improve our competitiveness across both natural and synthetic garment categories, thereby opening infinite export possibilities for India amid shifting global sourcing trends," said AEPC CEO Mithileshwar Thakur. With current tariff levels - India at 26%, Vietnam at 20%, and Bangladesh at 35% - India is seen to be competitive against Bangladesh in natural garments but faces pressure in the synthetics segment. "It is looking good for us and a trade deal will help," said K M Subramani, president of Tirupur Exporters' Association. The big question is the ability of Indian garment makers to manufacture on a scale, especially given their reluctance to invest in capacity addition.
Time of India
05-07-2025
- Time of India
Girl, 11, dies after being run over by private bus near Erode
ERODE: An 11-year-old girl was killed after being run over by a private bus while crossing the road near Bhavanisagar here on Saturday. The Bhavanisagar police identified the deceased as R Shaileshini of Periya Kallipatty in their jurisdiction. She was a Class VI student of a govt higher secondary school at Thottampalayam. According to an investigation officer, Shaileshini left her house for a local shop around 7.40am to buy chocolates. The incident took place while she was returning home after buying chocolates. 'She crossed the Bhavanisagar-Bannari state highway without noticing the oncoming vehicles. A private bus belonging to Tirupur-based SCM Textiles knocked her down and she was crushed under its wheels. The girl succumbed to her head injuries on the spot. ' The bus driver, identified as M Gopalsamy, 35, of Sathyamangalam, went to the Bhavanisagar police station and reported the accident. Police visited the accident spot and sent the girl's body to the govt hospital at Sathyamangalam for a postmortem. Following the accident, locals urged police to install a barricade on the spot to prevent further accidents and loss of life. The Bhavanisagar police registered a case and arrested the bus driver, who was produced before a judicial magistrate and lodged in the Gobichettipalayam sub-jail under judicial custody. Further investigation is on.
Hans India
04-05-2025
- Business
- Hans India
Industries key to employment generation: Collector Sumit Kumar
Palamaner (Chittoor District): Establishment of industries is the only sustainable route to large-scale employment generation, said Chittoor District Collector Sumit Kumar. He was speaking at a one-day workshop held in Gangavaram mandal of Palamaner constituency, aimed at women from self-help groups (SHGs) with tailoring experience from Palamaner, Gangavaram, Peddapanjani, and Baireddipalle regions. The workshop was conducted in collaboration with Eastman Exports, a Tirupur-based garment company from Tamil Nadu, which is exploring the possibility of setting up operations in Palamaner. Addressing the workshop, Collector Sumit Kumar underlined that discussions have already been held in V Kota and Chittoor to assess the feasibility of setting up Eastman Exports in Palamaner. If established, the unit could provide employment to anywhere between 2,000 and 4,000 people in and around Palamaner. He further stated that if SHG women can demonstrate the willingness and ability to work for eight hours a day in the garment sector, the company management is ready to move forward. A preliminary survey has identified about 1,200 SHG women in the area with tailoring skills. Their contact details have been collected, and their expertise will be evaluated to facilitate job placements through the proposed garment MLA N Amarnath Reddy, who also participated in the event, said that Chief Minister N Chandrababu Naidu is committed to transforming every woman into an entrepreneur. He noted that several garment industries have already been brought to Palamaner, V Kota, and Kuppam as part of this mission. He expressed confidence that establishing such industries across the state will not only empower women financially but also contribute to the growth of the state's GDP. Others who attended the workshop include DRDA PD Sridevi, Eastman Exports Global Clothing Pvt. Ltd. CEO Ritesh Kumar, General Manager Moyuddin, DIC AD Venkata Reddy, APIIC Manager Ismail, Palamaner Municipal Commissioner NV Ramana Reddy, among others.
