Fashion
Experts call for market diversification as US tariff heat rises
US President Donald Trump’s additional tariff of 25 per cent on Indian goods is set to take effect in a few days, even as Indian industries continue to grapple with the potential fallouts.
Sectors that are heavily reliant on exports to the US, chief among which is the textile and apparel sector, find themselves directly in the line of fire. The US remains one of the largest markets for Indian textiles, making the sector highly vulnerable to policy shifts like this one.
The US move to double tariffs on Indian goods to 50 per cent, as noted in a Morgan Stanley report, could cut up to 80 basis points from India’s GDP growth over the next 12 months—unless offset by government measures, policies, and reforms, media reports underlined.
The textile industry, being one of the country’s largest employment generators and exporters, is expected to suffer a substantial setback. The readymade garments sector—which earns around 10–15 per cent of its revenue from the US, according to some estimates—risks losing competitiveness to competing countries.
The impact on home textiles and carpets could be more severe, claim industry insiders.
Experts are thus emphasising the urgent need for India to diversify its export markets. While the US has been a dominant trade partner, overdependence on a single country makes India’s apparel export sector more susceptible to shocks.
Experts suggest that India should expand its presence in regions like ASEAN, the European Union, Africa, Latin America, and also deepen ties with BRICS nations to cushion the blow.
Though some of these markets may not match the size of the US, diversification helps mitigate future risks and reduces vulnerability to geopolitical coercion. Experts underline that an aggressive pursuit of Free Trade Agreements (FTAs) and new strategic partnerships is now essential. They also point out that India’s ability to navigate this crisis will depend on policy agility, global alliances, and a recalibrated trade strategy.
And if recent media reports are something to go by, India is already ramping up efforts to expand its export outreach to a large number of countries. These initiatives are aimed at reducing reliance on any single market to insulate Indian exporters from future disruptions. Africa, for instance, is emerging as one of the world’s fastest-growing consumer regions, offering substantial opportunities across sectors.
Latin America also presents a promising avenue, not only for textiles but also for pharmaceuticals and chemicals exports.
India’s trade agreements with countries like UAE, Australia, etc., signed earlier, as well as the recent Comprehensive Economic and Trade Agreement (CETA) with the UK, experts believe, could help Indian exporters find more resilient and sustainable revenue streams over the long term, even if some projections suggest that India’s exports to non-US markets could grow by 15–20 per cent annually over the next five years. If realised, this would significantly enhance India’s global trade position and reduce its overdependence on the US.
While it remains to be seen how quickly and successfully India can execute the diversification strategy, industry voices agree that it is no longer a matter of choice but a necessity. Even if trade talks with the US resume and a more favourable agreement is reached, exporters argue that the evolving global geopolitical landscape makes it imperative for India to build a wider and more balanced portfolio of export destinations.
The US has announced an additional 25 per cent tariff on Indian goods, posing a significant challenge to export-driven sectors, particularly those in the apparel and textiles domain.
According to some estimates, the US move to double tariffs on Indian goods to 50 per cent could cut up to 80 bp from India’s GDP growth over the next 12 months.
Experts stress the need for urgent market diversification.
Fibre2Fashion News Desk (DR)
The collection features distinct women’s and men’s capsules designed for movement, comfort and self-expression.
H&M India has launched its official Lollapalooza India 2026 merchandise collection, marking its second year as festival sponsor.
The limited-edition drop features bold graphics, vibrant colours and relaxed silhouettes.
With separate women’s and men’s capsules, the range includes graphic tees, caps and tote bags designed for comfort, movement and self-expression from day to night performances.
“Lollapalooza India is a strong cultural moment, and a natural space for H&M to connect with a younger generation. Fashion today is about self-expression and confidence, and through this collaboration we reinforce our commitment to creating accessible, culturally relevant fashion that empowers individuality,” said Helena Kuylenstierna, Director, H&M India.
The range features graphic merchandise tees for both women and men, along with festival essentials such as caps and tote bags. Each piece is designed to move seamlessly from day sets to night performances.
Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.
Fibre2Fashion News Desk (RM)
Apparel imports (code **) eased to Au$*.*** billion (~$*.*** billion), compared with Au$*.*** billion a year earlier. In November ****, imports fell sharply by **.** per cent year on year to Au$*.*** billion (~$*.*** billion) from Au$*.*** billion. The November contraction points to retailers delaying replenishment amid weak consumer confidence, promotional stock overhangs, and a preference for tighter inventory management ahead of the peak sales season.
Imports of textile yarn, fabrics, and made-up articles (code **) increased *.** per cent to Au$*.*** billion (~$*.*** billion) from Au$*.*** billion in the same period last year. However, November **** shipments under this category slipped to Au$*** million, down from Au$*** million in November ****, indicating short-term moderation after earlier restocking by manufacturers and converters.
The CFDA x NY Forward Grant Fund, developed with funding from both the New York State Department of State and Ralph Lauren Corporation (Ralph Lauren), will provide partially matching grants to designers and manufacturers based in New York City’s Garment District. The U.S. Fashion Manufacturing Fund, created with Ralph Lauren as founding partner, will support apparel manufacturers nationwide. Both programs aim to help companies to modernize equipment, expand services, and train workers – building the capacity and resilience of American fashion manufacturing.
CFDA has launched two new grant programmes with Ralph Lauren to strengthen American fashion manufacturing.
The CFDA x NY Forward Grant Fund will support New York City’s Garment District, while the US Fashion Manufacturing Fund will aid manufacturers nationwide, focusing on modernisation, workforce training, innovation and long-term industry resilience.
These programs build on the success of the CFDA’s Fashion Manufacturing Initiative (FMI), launched in 2013 in affiliation with the New York City Economic Development Corporation (NYCEDC), Andrew Rosen, and with the long-term support of Ralph Lauren, among others. To date, Ralph Lauren has contributed $2 million as FMI’s Premier Underwriter, enabling grants to 54 factories and positively impacting more than 2,000 jobs.
“Strengthening American manufacturing to ensure designers have local partners has long been at the core of CFDA’s mission,” said Steven Kolb, CEO and President of the CFDA. “We are proud to extend our decade-plus work with Ralph Lauren Corporation and expand to a national level while also continuing our local NYC investments alongside our first-ever partnership with the New York State Department of State.”
Together, these new grant programs mark a landmark commitment: sustaining New York’s Garment District while bolstering U.S. manufacturing nationwide — ensuring that American fashion continues to lead globally through innovation, craftsmanship and community.
“Our expanded partnership with the CFDA reflects Ralph Lauren’s enduring commitment to advancing innovation and supporting American fashion,” said Katie Ioanilli, Chief Global Impact & Communications Officer, Ralph Lauren Corporation. “This is not only an investment in our industry — it’s an investment in a vital part of American culture that we share with the world.”
Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.
Fibre2Fashion News Desk (RM)
H&M India unveils official Lollapalooza India 2026 collection
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