As Indian textile exports declined for the second consecutive month in Oct due to US tariffs, while manufacturing units are taking huge cuts to margins – even losses hoping for a trade deal.
Exports of ready-made garments (RMG) in Oct stood at $1.7 billion, declining 12.9%Out of India’s $15.99 billion ready-made garment exports in FY25, Tamil Nadu accounts for 41.79%, with clusters like Tirupur being a key export region.
Prabhu Dhamodharan, convenor of the Indian Texpreneurs Federation, an industry body, said, “Large export units are providing huge discounts, supplying with zero margins or even taking losses to hold on to customers with the hope that a trade deal will be reached in Nov.
However, smaller units cannot afford to provide these discounts and are cutting down volumes.” He further said, “The challenge is two-fold. On one side are the US tariffs, and on the other, China is aggressively dumping its textile goods in alternative markets such as the European Union, which makes it difficult for us to gain a foothold elsewhere.”
News Courtesy : Times of India