India textile exporters face US competitiveness risk despite lower tariff
India’s 10% Section 301 tariff is lower than several rivals’, but tariff-rate quota exemptions for competing suppliers could erode its apparel edge. Emkay Research says the near-term export impact may be limited, with India-US trade negotiations critical.
Indian textile and apparel exporters face a relative US competitiveness loss as rivals receive tariff-rate quota exemptions, despite India’s lower 10% Section 301 tariff. Emkay sees limited near-term overall export impact but flags trade-deal negotiations as crucial.
Why this matters
The signal extends the recent warning that US Section 301 tariffs put Indian apparel exporters’ sourcing edge at risk, adding that rival tariff-rate quota exemptions may blunt India’s lower tariff advantage.
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