Indian Textiles May Not See A Big Trade War Boost, Cautions Pearl Global Industries MD

Banerjee acknowledged that the extra tariffs on China has caused US importers to look at other sourcing destinations, and India has started getting inquiries.

Banerjee, however, added that Chinese players are offering 10% to 40% discounts to US retailers, while the problem India could face is in terms of costs and matching them with that of China.

He noted there were two key drawbacks in the India textile industry: their readiness and raw material flow. It is key to note India is not self sufficient in manufacturing all kinds of textiles, and is still dependent on imports from China for raw materials. Banerjee said countries like Indonesia, Cambodia, and Vietnam, which are better placed than India in the context of raw material supply, might be a more viable alternative to China for US importers.

This is a key reason the Indian textile industry may not see a boost in opportunity from the current US China tariff debacle and shifting trade dynamics.

However, Bannerjee did not rule out all hope on expected benefits for the space. Indian players could see marginal benefits, according to him.

We could see some benefit coming in the cotton segment due to its robust supply chain in the country, he said.

It is also key to note that India's readymade cotton garment exports stood at $861 million in 2024. We also have a strong presence for the same in the US, with US imports of Indian cotton apparel at $2,936 million in 2024, he said.