Expert voice

In light of the prevailing microeconomic instability, DFU Publications interacted with Animesh Saxena, Managing Director of Neetee Clothing Pvt. Ltd., to gain insights on the potential near- to mid-term impact of reinstated U.S. tariffs on India’s textile sector, with a particular focus on the following areas:

Q: Potential for increased competitiveness—especially if key competing countries are subject to higher tariff rates, potentially creating a relative advantage for Indian exporters.
A: Yes, the potential of shifting the business to India in the medium term, especially for SS 26, is there. The challenge would be the availability of additional capacity with Indian factories. 

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Q: Risk of reduced overall U.S. and global demand—driven by higher costs for buyers, inflationary pressures, or a shift in consumer preferences.
A: Very high probability of a drop in sales at least in the next few months.
Q: Effects on specific textile product groups—identifying potential winners and losers within subsectors such as apparel, home textiles, yarn, and fabric.
A: Initially every sector of textiles will be looser. The situation will be clearer by the end of the year.

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Q: Implications for supply chain realignment and sourcing strategies—analyzing how U.S. importers and Indian exporters may recalibrate sourcing decisions and logistics in response to the new trade landscape.
A: It's too early to predict since trade negotiations with each country will take a few months, and it will be a wait-and-watch for importers to shift their sourcing.

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Q: Impact on India’s domestic textile market—assessing how export volatility, input cost shifts, and supply-demand mismatches might affect domestic pricing, inventory cycles, and competitiveness for Indian manufacturers focused on the home market.
A: Some export capacity might be shifted to the domestic market, resulting in severe competition and price drops. Further dumping of apparel from Bangladesh, China, and Sri Lanka is also not ruled out.

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