Indian textile exporters under stress amid festive demands

The festive demand from the US for the Indian textile sector has worsened because of the 50 per cent US tariffs along with weak demand, making it harder to even raise prices, noted a report by Systematic Research.

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The report stated that if the 50 per cent tariff remains, retailers may need to renegotiate prices with suppliers, and Indian manufacturers will likely have to absorb a significant portion of the cost increase.

"The US remains a key export market, accounting for 8-10 per cent of India’s RMG revenues, but recent tariff hikes are expected to limit growth in FY26. Export orders may be pressured as retailers negotiate sharper price points, compressing realisations for Indian suppliers," the report added.

The report added that Indian exporters are already facing stiff competition from neighbouring countries, such as Bangladesh, which continue to enjoy lower tariff rates, putting India at a disadvantage in the US market.