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)
Woven garment exports slightly outpaced knitted garment exports in terms of growth. Knitwear exports (Chapter **) rose by *.** per cent to $*.*** billion, compared to $*.*** billion in the same period of fiscal ****–**. Woven apparel exports (Chapter **) increased by *.** per cent to $*.*** billion, up from $*.*** billion in July–September ****, EPB data showed.
Home textile exports (Chapter **, excluding ******) also grew, rising by *.** per cent to $***.** million, compared to $***.** million in the same period of the previous fiscal. Collectively, exports of woven and knitted apparel, clothing accessories, and home textiles accounted for **.** per cent of Bangladesh’s total exports, which stood at $**.*** billion during the period. Higher demand for diversified and value-added textile products supported this growth.
Slightly more than half of the various industrial sectors produced less than they did one year previously. Of the eight largest industrial sectors, output rose the most sharply in the repair and installation of machinery, while it fell the most sharply in the transport equipment industry.
A more accurate picture of changes in short-term output is obtained when the figures are adjusted for seasonal effects and the working-day pattern. After adjustment, manufacturing output rose by 1.7 per cent in August relative to July, CBS said in a press release.
In August 2025, Dutch manufacturing output remained unchanged year-on-year, although output declined in over half of the industrial sectors.
After seasonal adjustment, output rose by 1.7 per cent compared to July.
The strongest growth was seen in the repair and installation of machinery, while transport equipment recorded the sharpest decline.
After adjusting for seasonal and working-day effects, manufacturing output often fluctuates significantly. In the spring of 2020, output declined rapidly, reaching a low point in May 2020. This was followed by an upward trend until May 2022. The trend has reversed since then.
Producer confidence was less negative in September than it was in August. Manufacturers were more positive regarding output for the next three months, in particular.
Germany is an important market for the Dutch manufacturing sector. In September, German manufacturers were more negative than they were in August, as reported by Eurostat. In August, the calendar-adjusted output of the German manufacturing sector was down by 5.1 per cent, year on year. Relative to July, output fell by 5.5 per cent, as reported by Destatis.
Fibre2Fashion News Desk (RR)
The first subprogramme, approved in 2022, introduced pivotal policy measures that guided the energy sector toward a more efficient and renewable development pathway. Building on this foundation, subprogramme 2 advances regulatory reforms to strengthen the energy efficiency framework and enhance policy clarity to attract private sector investment. A key milestone under the subprogramme is the introduction of the country’s first set of regulations establishing Minimum Energy Performance Standards for electrical appliances, starting with air conditioners, which account for the largest share of energy consumption in the residential sector, ADB said on its website.
Subprogramme 2 will also establish an Energy Efficiency Revolving Fund aimed at facilitating access to finance for local small and medium-sized enterprises (SMEs) to invest in energy-efficient technologies. The revolving fund will be set up through a financial intermediation structure to enable local banks to extend loans to SMEs for energy efficiency investments. By mobilizing domestic financial institutions and supporting SMEs, the revolving fund is expected to accelerate the nationwide scale-up of energy efficiency investments.
Asian Development Bank (ADB) has approved $82.5 million for Phase 2 of Cambodia’s Energy Transition Sector Development Programme to support clean energy through policy reforms and investments.
The programme introduces energy efficiency standards, establishes a revolving fund for SME financing, and also aims to attract private investment.
“ADB is honoured to support Cambodia in its ambitious and transformative journey in the energy sector. Through a comprehensive reform package, combining policy support with strategic investments, the Energy Transition Sector Development Programme will support turning the government’s ambitious vision into reality,” said ADB acting country director for Cambodia Anthony Gill. “This includes the goal of achieving 70 per cent renewable energy in the power mix by 2030, along with a strong commitment to advancing energy efficiency, which is essential to ensure that Cambodia’s growth remains both sustainable and affordable.”
Subprogramme 2 will be followed by a third phase in 2027, which will further deepen reforms by expanding the energy efficiency regulatory framework and introducing technical standards for renewable energy, buildings, and industry to further attract private sector investment.
Fibre2Fashion News Desk (RR)
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