Clothing Manufacturers Association Of India Highlights U.S. Tariff Changes As A New Growth Opportunity For Indian Apparel Industry.

Mumbai, 3rd of April 2025 : The Clothing Manufacturers Association of India (CMAI) views the recent tariff changes imposed by the U.S. as a significant opportunity for India’s apparel industry. Under the new tariff regime, Indian apparel exports to the U.S. will benefit from a competitive advantage, potentially boosting the sector’s global positioning.

The U.S. recently announced higher tariffs on key textile-exporting nations like Bangladesh and Vietnam, potentially reshaping global trade dynamics. This shift could make India a more attractive sourcing destination for U.S. buyers, offering a unique opportunity for Indian exporters to strengthen their presence in the global market.

Santosh Katariya, President, Clothing Manufacturers Association of India (CMAI), said,“The U.S. tariff changes present a pivotal moment for India’s apparel industry. As global trade dynamics shift, Indian manufacturers have a strong opportunity to expand their presence in the U.S. market. However, to fully capitalize on this, we must scale up production, drive product innovation, prioritize sustainability, and meet global compliance standards. A well-coordinated effort from both the industry and policymakers will be crucial to strengthening India’s global competitiveness.”

Commenting on this development, Mr. Rahul Mehta, Chief Mentor, CMAI, stated, “On the face of it, these Tariffs will be a huge opportunity for the Indian Apparel Industry. We have always been pointing to the 10-12% duty relief for Bangladesh in the EU Markets as an important reason for that country to race ahead of us in the EU market. Now, we will have the same huge advantage, if not more, in the US Market. So, I say, this change in tariffs will be a huge advantage for us. If not, Indian Textile Industry will once again miss the ‘Bus of Opportunity’ provided to us.”

CMAI also cautioned that the new trade landscape brings significant challenges:

• Countries like Bangladesh and Vietnam, facing higher tariffs in the U.S., will intensify their focus on alternative markets such as the EU, UK, and Australia, heightening competition for Indian exports.
• These nations are also likely to target the Indian domestic market more aggressively, increasing competitive pressures on Indian players.

The apparel industry now stands at a crucial juncture. Whether India emerges as a stronger global apparel powerhouse will depend on how swiftly and effectively the industry, along with policymakers, acts to leverage this shifting trade dynamic. 

About CMAI

Established sixty-one years ago, The Clothing Manufacturers Association of India (CMAI) is the most representative association of the Indian apparel industry having over 5000 members and serving more than 35,000 Retailers across India. Its Membership consists of Manufacturers, Exporters, Brands, and ancillary industry.

CMAI has contributed immensely towards development of the industry. It acts as a catalyst of Change, Evolution, and Transformation by regular interactions with the Government to encourage industry-friendly policies on one hand, and with the Members to keep pace with the dynamics of market forces on the other. CMAI has been responsible for influencing several measures in policies of the Government including GST, PLI, Duty Drawback, Export Promotion Schemes, FTAs, etc. It is also playing a vital role in pushing the industry into a more ESG and Sustainability oriented working.

Visit: www.cmai.in | Follow Twitter: @CMAI_Official

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