India Poised for Apparel Export Surge Amid Tariff Tensions
India could increase its apparel exports to the US by capturing market share from other Asian countries facing higher US tariffs. This shift, reported by SBI, highlights India's opportunity to boost its GDP by expanding its export footprint in apparel and other commodities amid global trade shifts.
- Country:
- India
As the United States enforces stricter tariffs on key Asian exporters, India is positioned to bolster its apparel exports across the Pacific. A recent State Bank of India (SBI) report reveals that India, which presently holds a modest 6% of the US apparel imports market, could enhance its economic standing by seizing an additional 5% market share from Asian competitors, potentially increasing India's GDP by 0.1%.
The report emphasizes India's strong standing, particularly in chemicals and textiles via a Revealed Comparative Advantage (RCA), while acknowledging the intense competition from countries like Bangladesh, Cambodia, Indonesia, and Vietnam. Of these, Vietnam enjoys a favorable tariff advantage, leaving others vulnerable to US tariff hikes, which in turn benefits India.
SBI's findings, supported by 2024 US import data, note a significant opportunity for India to expand its market share, as traditional competitors like Bangladesh, Cambodia, and Indonesia face tariffs that could impede their exports. Besides apparel, the report also identifies potential growth areas for India in agricultural products and processed goods, urging India to strategically maneuver through shifting trade winds to boost its economic growth trajectory.
(With inputs from agencies.)
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