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India will get tremendous benefit from higher tariff on China, demand for Indian products will increase in US
Despite the decline in India's merchandise exports in May, garment exports increased by 11.35%. This increase was 12.80% in April-May. Exporters consider this to be the result of higher duties on China in the US and tension in Bangladesh. Increasing garment exports will boost employment. With lower duties on Indian garments in the US compared to China, there is an opportunity for India to increase its market share.
In May this year, Indian merchandise exports would have decreased by 2.17% from the year-ago last month. However, this time, clothing exports increased by 11.35% compared to last month of May 2024. Garment exports increased for the second time in the current financial year 2025-26.
As well as April-May 2025, the rise has been 12.80%. Garment export businesses regard the prime explanation for the same as the higher tariff on Chinese clothing in the US market compared to India, along with the prevailing domestic instability in Bangladesh. Garments are regarded as an employment-based sector, and hence, a rise in the export of garments would enhance employment as well. India has stiff competition from China and Bangladesh in the global garment market.
Garment exports from India have got a boost since the internal issues in Bangladesh started in August last year. This is due to the fact that importers from the developed nations are opting to import products from Indian export houses rather than those from Bangladesh, and are even encouraging them to increase their production base. These days, the tariff level on Chinese products in the US market is higher than on Indian and this has raised the sales demand for Indian products in the market.
