India's export sectors such as apparel and footwear are expected to gain a competitive edge in the US market following Washington's decision to impose higher tariffs on over a dozen countries, including Bangladesh and Thailand, exporters said.
On Monday the Donald Trump administration announced a 25% tariffs on Japan, South Korea, Kazakhstan, Malaysia, Tunisia; 30% on South Africa, Bosnia and Herzegovina; 32% on Indonesia; 35% on Bangladesh, Serbia; 36% Cambodia, Thailand; and 40% tariffs on Laos and Myanmar.
These duties will come into effect from Aug.1.
Bangladesh is the third biggest exporter of apparel (not knitted or crocheted) to the US with a market share of 13.15% in 2024.
India's exports to the US in this sector was $2.5 billion but it is not among the top three, according to an analysis by economic think tank Global Trade Research Initiative,
In apparel knitted and crocheted, Cambodia with about 6% share is ahead of India (5.09%).
"India faces stiff competition from Bangladesh and Vietnam in the US garment market. High duties on Bangladesh will help enhance competitiveness of Indian products in the US market," an exporter said.
Federation of Indian Export Organisations President SC Ralhan said that sectors like leather and apparel may get competitive advantage from India's competitor countries.
A Mumbai-based exporter said that the elevated duties on Thailand can lead to gains in exports of rubber and its articles.
Thailand is the top exporter of rubber to the US with a share of 15.16% while India is at fourth spot with 2.93% share of US imports.
"We will get greater advantage in the leather segment also," the export added.
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