Indian Garment Makers Shift Focus from US Market After Tariff Increases

RANCHI: Indian garment manufacturers are reevaluating their dependence on the US market following significant tariff hikes that have disrupted trade. Sudhir Dhingra, founder of Orient Craft, has notably reduced shipments to the US after tariffs soared to as high as 50% last year, impacting orders from major retailers like American Eagle and Gap.

Dhingra, 77, has pivoted his focus towards British retailers such as Next and Marks & Spencer, which now account for a substantial portion of his factory’s output. Despite recent reductions in tariffs and the potential for a new trade agreement, he believes the risks associated with relying heavily on a single market are too great.

This shift reflects broader concerns within the Indian textile industry, which has been grappling with the implications of fluctuating trade policies. The increased tariffs have not only affected profit margins but have also forced manufacturers to diversify their client base to mitigate risks associated with international trade.

Looking ahead, industry leaders are expected to engage in discussions regarding new trade agreements that could stabilize the market. As manufacturers adapt to these changes, the focus will likely remain on expanding into alternative markets to ensure sustainability and growth.