Fashion
Indian textile hubs under strain due to tariffs, await job loss: GTRI
Indian goods worth $60.2 billion started facing 50 per cent US duties from August 27. Thirty per cent of US-bound exports remain duty-free. Pharmaceuticals, active pharmaceutical ingredients (APIs), electronics lead $27.6 billion worth duty-free exports.
India’s competitors are poised to gain and will replace India in key sectors. The country’s gross domestic product (GDP) growth could drop from 6.5 per cent to 5.6 per cent, but 20 per cent export-to-GDP ratio provides cushion, the report noted.
US tariffs will hit 66 per cent of India’s exports worth $86.5 billion, with textile-apparel, carpets, handicraft, leather and the gems sectors are at risk, according to think tank Global Trade Research Initiative.
Labour-intensive sectors are bracing for 70 per cent export collapse.
Textile hubs like Tiruppur, Noida-Gurugram, Ludhiana, Jaipur and Bengaluru will be under pressure.
The most severely affected sectors are those where the United States accounts for over 30 per cent of India’s global exports, predominantly labour-intensive industries, which now face 70-80 per cent expected declines in annual exports.
Sectors with less than 20-per cent share in exports to the United States, though relatively insulated, still face 50-70-per cent potential declines due to their integration in global value chains. These include organic chemicals.
Textiles and apparel
India’s textiles and apparel sector, whose annual exports to the United States are worth $10.8 billion with 35 per cent of the share of total exports to that country, will see 63.9 per cent tariffs. Tiruppur, Noida-Gurugram, Ludhiana, Jaipur and Bengaluru will be under pressure. Bangladesh, Vietnam, Mexico, and CAFTA-DR countries are expected to replace Indian suppliers, GTRI report said.
With margins in the single digits, the new tariff effectively shuts Indian apparel out of its largest market. Tiruppur exporters are rushing shipments while cancelling new styles, while Noida-Gurugram players have frozen planned capacity expansions and is considering downsizing.
Ludhiana reports a slump in yarn and fabric demand, with working capital under stress; and Bengaluru units are preparing for shift cuts as buyers push for offshore production. Industry estimates warn of hundreds of thousands of jobs at risk across these hubs if US demand collapses.
Exporters have front-loaded shipments ahead of the deadline, but consider the government’s temporary 11-per cent cotton duty waiver (August 19-September 30) insufficient to offset the loss. A few firms are shifting US-bound programmes to Bangladesh, Indonesia, Vietnam and Guatemala, while others may start using factories in Ethiopia and Kenya (around 10-per cent tariff). Industry bodies are seeking emergency credit and tax relief.
Carpets
The carpets sector, with $1.2 billion worth annual exports to the United States and 58.6 per cent share, faces collapse, it noted. Livelihoods in Bhadohi, Mirzapur and Srinagar will be jeopardised, while Turkey, Pakistan, Nepal and China gaining.
Bhadohi-Mirzapur exporters report containers ready but orders cancelled or delayed, while Kashmir’s hand-knotting community faces potential mass unemployment as orders dry up. Moradabad, linked through metalware and accessories, is also seeing a slowdown.
Larger firms are exploring new markets in the Middle East and Europe, product diversification into synthetic rugs, and offshore machine-made production in Turkey or Egypt to maintain US access. However, for traditional hand-knotted producers, relocation is not an option due to the highly specialised and localised nature of their craft.
Handicrafts
Handicrafts ($1.6 billion; 40-per cent share) and furniture and bedding ($1.1 billion; 44.8-per cent share) risk factory closures across Jodhpur, Jaipur, Moradabad and Saharanpur, with Vietnam, China, Turkey, and Mexico filling the gap.
The effect is widespread across India’s craft hubs. Rajasthan faces severe disruption, with many workshops preparing for closures. Uttar Pradesh has seen orders paused and production cuts in brassware and wood-carving units. The tariff threatens not only incomes but also the survival of centuries-old craft traditions.
Leather and footwear
Leather and footwear ($1.2 billion; 20-per cent share) will lose ground to Vietnam, China, Indonesia and Mexico, threatening Agra, Kanpur and Tamil Nadu’s Ambur-Ranipet clusters, the GTRI report observed.
Industry bodies are pushing for diversification into the EU, the United Kingdom and Gulf markets and exploring ‘Made in Europe’ partnerships to retain competitiveness in the US market.
Furniture and Bedding
India’s exports to the United States of this sector was $1.1 billion in FY25, with the latter having 44.8-per cent share in India’s exports. Tariffs rise from 2.3 per cent to 52.3 per cent, affecting manufacturing hubs in Jodhpur and Moradabad.
Mattresses, already under US anti-dumping duties since 2024, will now face a prohibitive cost barrier, effectively pricing Indian products out of the American market, the GTRI report said.
Jodhpur and Saharanpur workshops report packed containers with buyers withdrawing orders, forcing overtime cuts and layoffs. The Delhi-National Capital Region upholstery belt is holding finished goods in warehouses as US buyers re-price contracts, while protests in Jaipur’s handicraft districts highlight fears of widespread job losses.
Thousands of livelihoods linked to timber, textiles, and artisanal supply chains risk collapse if US demand vanishes, according to the report.
For bedding and home textiles, Pakistan, China, Turkey and Vietnam are poised to replace Indian suppliers, while Vietnam, Indonesia, Mexico, and China will dominate mattresses and boxed foam products, it noted.
Organic Chemicals
Organic chemicals ($2.7 billion; 13.2-per cent share) will see tariffs jump from 4 per cent to 54 per cent, crippling chemical hubs in Gujarat, Maharashtra, Tamil Nadu and Andhra Pradesh and yielding ground to EU, China, Mexico and South Korea.
Fibre2Fashion News Desk (DS)
The data showed that the decline was driven mainly by weaker domestic exports, with goods produced in the Netherlands down 8 per cent YoY. In contrast, re-exports to the US rose 3.9 per cent during the period. Exports to the US have fallen every month on a YoY basis since July, CBS said in a press release.
Trade flows were influenced by uncertainty around US import tariffs. In the first half of 2025, trade between the two countries continued to grow, possibly as companies advanced shipments ahead of announced tariff measures.
Goods exports from the Netherlands to the United States fell 4.7 per cent YoY to €27.5 billion (~$33 billion) in the first ten months of 2025, driven by an 8 per cent drop in domestic exports, according to CBS.
Re-exports rose 3.9 per cent, while tariff uncertainty weighed on trade.
Imports from the US increased 1.9 per cent to €48.1 billion (~$57.7 billion).
Meanwhile, imports from the United States rose 1.9 per cent YoY to €48.1 billion (~$57.7 billion) in the first ten months of 2025.
Fibre2Fashion News Desk (SG)
The Philippines’ economic growth for the third quarter (Q3) of 2025 has been revised slightly lower, with gross domestic product (GDP) expanding 3.9 per cent year on year (YoY), down from the preliminary estimate of 4 per cent.
Gross national income growth for the quarter was also revised to 5.4 per cent from 5.6 per cent, while net primary income from the rest of the world was adjusted to 16.2 per cent from 16.9 per cent.
The Philippine Statistics Authority has revised down the country’s third-quarter 2025 GDP growth to 3.9 per cent from an earlier estimate of 4 per cent.
Gross national income growth was also lowered to 5.4 per cent, while net primary income from abroad eased to 16.2 per cent.
The PSA said the adjustments reflect its standard, internationally aligned revision policy.
The Philippine Statistics Authority said the revisions were made in line with its approved revision policy, which follows international standards for national accounts updates.
Fibre2Fashion News Desk (HU)
Operating margin improved sharply to 10.8 per cent from 4.4 per cent in FY24, while adjusted EBIT margin increased to 11.4 per cent from 10.7 per cent, marking the third consecutive year of margin expansion. The net income from continuing operations more than doubled to $502 million from $210 million, with adjusted net income rising to $537 million.
Levi Strauss & Co has delivered a strong FY25, with net revenues rising 4 per cent to $6.3 billion and organic growth of 7 per cent, alongside sharp margin expansion and higher profitability.
Q4 saw 5 per cent organic growth, led by Europe, Asia and DTC, which accounted for nearly half of revenues.
The company expects mid-single digit growth and further margin gains in FY26.
Diluted EPS from continuing operations increased to $1.26 from $0.52 in the previous year, while adjusted diluted EPS rose to $1.34 from $1.24. The company generated $530 million in operating cash flow and $308 million in adjusted free cash flow. The company returned $363 million to shareholders during the fiscal, up 26 per cent YoY, LS&Co said in a press release.
In the fourth quarter (Q4) ended November 30, 2025, the company reported net revenues of $1.8 billion, up 1 per cent on a reported basis and 5 per cent organically compared with Q4 FY24. Growth was broad-based, supported by strong momentum in Europe, Asia and Beyond Yoga, alongside high-single digit comparable growth in direct-to-consumer (DTC).
Europe recorded reported revenue growth of 8 per cent and organic growth of 10 per cent, while Asia delivered growth of 2 per cent reported and 4 per cent organically. In the Americas, revenues declined 4 per cent reported but increased 2 per cent organically, with the US business flat on an organic basis. Beyond Yoga continued to outperform, posting reported growth of 37 per cent and organic growth of 45 per cent.
DTC revenues increased 8 per cent on a reported basis and 10 per cent organically, driven by strength across all regions. E-commerce revenues rose 19 per cent reported and 22 per cent organically, with DTC accounting for 49 per cent of total quarterly revenues. Wholesale revenues declined 5 per cent reported and were flat organically.
Operating margin in the quarter was stable at 11.9 per cent, while adjusted EBIT margin declined to 12.1 per cent from 13.9 per cent a year earlier due to tariff-related pressure on gross margins and higher adjusted SG&A expenses. Gross margin stood at 60.8 per cent versus 61.8 per cent in Q4 FY24. Net income from continuing operations was $160 million, with diluted EPS of $0.4 and adjusted diluted EPS of $0.41.
“Over the past few years, we’ve taken bold steps towards becoming a DTC-first, head-to-toe denim lifestyle brand,” said Michelle Gass, president and CEO of Levi Strauss & Co. “We are well on our way toward realising our strategic ambitions. We have narrowed our focus, improved operational execution and built greater agility across the organisation. As a result, we’ve elevated the Levi’s brand and delivered faster growth and higher profitability as reflected by our Q4 and full year 2025 results. While we still have important work ahead, the company is at an inflection point—emerging as a stronger, more resilient global business ready to define the next chapter of LS&Co.”
“We are sustaining our momentum, delivering 5 per cent organic growth in the fourth quarter on top of 8 per cent growth in the prior year. Our success in denim lifestyle has enabled us to expand our addressable market, positioning us for mid-single digit growth in 2026 and beyond,” said Harmit Singh, chief financial and growth officer of Levi Strauss & Co. “Our disciplined approach to converting growth into profitability has improved adjusted EBIT margin again in 2025 for the third year in a row, and we are on track to expand margins further as we strive toward 15 per cent. Our confidence in this trajectory is reflected in a new $200 million ASR program.”
Looking ahead, the company expects mid-single digit revenue growth in fiscal 2026 alongside further adjusted EBIT margin expansion, supported by continued DTC momentum, disciplined cost management and ongoing brand strength, added the release.
Fibre2Fashion News Desk (SG)
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