India's Textile Sector May Benefit as Vietnam, Bangladesh Face Challenges

India's textile sector may gain a competitive edge in the global market due to rising labor costs in Vietnam and ongoing political instability in Bangladesh, two of its key export rivals, according to a report by Systematix Research.

- TBG NETWORK

The report, however, highlighted that the near-term outlook for the sector remains challenging. Tariff-related uncertainties may force exporters to absorb part of the additional costs, putting pressure on margins. Companies are also expected to pass on a significant portion of these costs to consumers, which could lead to higher textile and apparel prices and potentially reduce demand from key markets like the US.