Indian Textile Exporters Target Europe to Counter US Tariffs

• Indian textile exporters are seeking new buyers in Europe and offering discounts in the US to offset high tariffs
• EU trade talks are advancing, with exporters upgrading facilities to meet stricter standards on chemicals, labeling, and ethical sourcing
• Continued US tariffs threaten jobs and may push some companies to relocate production to Oman or Bangladesh

According to industry executives, Indian textile exporters are exploring new European markets while discounting prices in the US for existing customers in response to US tariffs of nearly 50%.

Indian textiles exports are focusing on Europe to offset US tariffs, with textile discounts as part of a trade shift strategy targeting global markets in their export strategy.

In August, U.S. President Donald Trump doubled tariffs on imports from India, which are among the highest for any trading partner, impacting a wide range of products from garments and jewellery to shrimp.

A Mumbai garment exporter speaking privately said the company is focusing its efforts on expanding into European Union markets and officials said a quick and early trade deal between India and the EU would greatly enhance shipments.

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Trade discussions are at an inflection point with teams attempting to reach a free trade agreement by year-end. The EU is already India’s largest trading partner for goods. Bilateral trade was approximately $137.5 billion for the fiscal year ending March 2024, up nearly 90% over the last 10 years.

Indian exporters are enhancing production capabilities and changing practices to be able to sell to EU markets with more stringent regulations on chemical usage, label requirements, and ethical sourcing. The push to enter EU markets is also a way to be less reliant on US-Market, said Rahul Mehta, chief mentor at the Clothing Manufacturers Association of India.

The US remains India's largest textile market with ever 29% of the nearly $38 billion in exports heading to the US in fiscal 2025. Some Indian exporters including Vijay Kumar Agarwal of Creative Group are providing discounts to help keep customers in the US.

Agarwal intimated the 6,000-7,000 of his 15,000 employees could be affected with added tariffs, as business may shift to Oman or Bangladesh within six months.