India's textile exports to US jumped 9% in July on pre-tariff rush

India's textile exports to the US rose 9.1% in July as suppliers rushed shipments ahead of new tariffs though growth lagged Vietnam and Bangladesh, according to CITI

A rush by US textile and apparel companies and their Indian suppliers to ship goods before the Donald Trump administration’s new tariff on India took effect led to a 9.1 per cent year-on-year (Y-o-Y) rise in India’s exports in July. On a month-on-month basis, exports grew 12 per cent over June, according to data shared by the Office of Textiles and Apparel (OTEXA), part of the US International Trade Administration.

 

An analysis by the Confederation of Indian Textile Industry (CITI) said that despite this growth, India’s expansion remained significantly lower than that of its key competitors in the year-to-date period. Exporters from Tiruppur told Business Standard that while major US brands have agreed to continue with existing orders for the upcoming summer season, they are doing so at a discount of 5-8 per cent, depending on the margins of Indian exporters.

 

 

“In July, US textile and apparel imports from Vietnam and Bangladesh rose by 14.2 per cent and 5.2 per cent, respectively, compared to July 2024. While growth momentum moderated versus June, both countries continued to strengthen their position in the US market,” CITI’s analysis said.

 

The rise in exports from India and other suppliers came largely at China’s expense, as Beijing’s shipments to the US fell 35 per cent versus July 2024. From January to July, India’s textile and apparel exports to the US rose 11.4 per cent to $6.22 billion, up from $5.58 billion in the same period of 2024. For Vietnam, exports touched $10.41 billion, up 18 per cent Y-o-Y, while Bangladesh’s exports rose 21 per cent to $5.11 billion. The rise was mainly owing to a 20 per cent dip in Chinese exports $11.21 billion.

 

The textile and apparel sector accounts for about 2 per cent of India’s gross domestic product (GDP) and is one of the country’s largest sources of jobs and livelihoods. The US remains India’s single-largest market, accounting for almost 28 per cent of its textile and apparel exports.

 

“It is a fact that no new orders are being placed by the US companies in Tiruppur. However, the existing orders are being maintained by the US brands, as a sudden diversification of orders is not viable,” said Elangovan Viswanathan, president of the Buying Agents Association and managing director of SNQS Internationals.

 

“They are picking the summer season orders. The industry in Tiruppur may face a hit of around ₹10,000-15,000 crore if no new orders are placed for next year,” said Viswanathan.

 

India’s textile and apparel exports to the US were close to $11 billion in FY25. China is the largest supplier to the US, followed by Vietnam, India, and Bangladesh. At 20 per cent each, the tariff rates for Vietnam and Bangladesh are significantly lower than those applied to India.