CITI Chairman Rakesh Mehra highlighted the positive trend in exports to the U.S., noting, “In the current financial year, India’s T&A exports to the U.S. during April-August increased by about 6% compared to the same period last year.
This outpaced the growth rates of key competitors, with China at 2%, Vietnam at 0.4%, and Bangladesh recording a decline of -2.2%. India’s enhanced performance signals its growing preference among U.S. buyers and highlights its increasing share in this critical market.”
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Mehra emphasized that President Trump’s previous administration focused on reducing dependency on China by diversifying trade sources, a stance that aligns with India's aspirations to strengthen its position in the U.S. market.
"With the new administration, the Indian T&A industry is optimistic about expanding its role as an alternative supplier to China," he stated.
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However, a significant barrier remains in the form of high tariff rates, which for certain apparel categories can reach up to 32%. This, according to Mehra, restricts India’s ability to further increase its market share.
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“CITI is hopeful that the new government will work closely with India to facilitate revisions in tariffs,
thus positioning India as a key supplier of quality textile and apparel products to the U.S.
This could catalyze a new phase in India-U.S. textile trade relations, providing a valuable alternative to China for American retailers and consumers alike” cited Mehra.