Indian garment exporters are cutting their dependence on the US market and turning to Europe, the UK and the UAE after steep American tariffs, Reuters reported on 11 November 2026 from Ranchi. Orient Craft, a Ranchi manufacturer, now gets less than 10% of its sales from the US, down from 84% before the tariffs.
Founder Sudhir Dhingra, 77, said US buyers cancelled orders or sought discounts after US President Donald Trump announced tariff hikes in April 2025. Some asked suppliers to absorb 25% of the duty, though manufacturer margins are under 10%, he said. Orient Craft’s annual exports are about 1.5 billion rupees ($15.82 million) and it makes dresses, shirts and children’s clothing for British retailers Next and Marks & Spencer.
How Hard Did US Tariffs Hit Indian Garment Exporters?
Reuters says US tariffs rose to as much as 50% last year. Current US duties on Indian products are 10% under Section 301, plus base tariffs of 6% to 12%.
Data from the Global Trade Research Institute (GTRI) cited by Reuters show that from April to August, India’s textile, apparel and home-furnishings exports to the US fell 9.8% to $4.0 billion. Shipments to other markets rose 3.7% to $15.2 billion. Industry estimates put the US share of Indian exports at 25.4% at the end of August, down from 28.3% in 2022.
Which Markets Are Exporters Targeting?
Exporters cite tariff uncertainty, higher shipping costs and buyer demands for discounts. Indian clothing has duty-free access to Britain under the India-UK trade deal, in effect since July. A similar agreement with the European Union could remove duties of 12% to 17%, Reuters reports. A. Sakthivel, chairman of the Apparel Export Promotion Council, named Germany, France, Italy and the Netherlands as key EU targets.
Gokaldas Exports, which employs more than 53,000 people, aims to raise Europe’s share of its revenue from 15-16% to 25-30% over three to five years, and cut its US share from 50-55% to 35-40%. Managing Director Sivaramkrishnan Ganapathi said: “It is not a temporary shift.” Chandrima Chatterjee, secretary general of the Confederation of Indian Textile Industry, said diversification is becoming a structural strategy for US-heavy exporters.
Why Ranchi Is Gaining Garment Factories
Ranchi, in Jharkhand, is known for coal and iron ore but is now attracting garment makers with subsidies, easier land access and an educated workforce. Reuters visited three factories in and around the city employing about 8,000 people in total. Gokaldas has two factories in Ranchi and plans a third, creating up to 4,600 jobs. Mrityunjay Singh, its senior vice president of operations, said Ranchi offers at least a 10% efficiency advantage over other locations.
Market and Trade Reaction
No stock market reaction was reported in the source. The Indian apparel market is worth $150 billion and is growing 7-8% a year, according to the Reuters report.
What Happens Next?
Exporters say they will keep serving the US but will not depend on it. Dhingra said: “Even if there is a deal, what is the guarantee that it will hold water?” Auburn Design, which makes Jockey products for licensee Page Industries, said it cannot rely on a single market, product or buyer.
Frequently Asked Questions
How much of Orient Craft’s sales come from the US now?
Less than 10%, down from 84% before the US tariffs, according to Reuters.
How much did India’s textile exports to the US fall?
From April to August, textile, apparel and home-furnishings exports to the US fell 9.8% to $4.0 billion, while shipments to other markets rose 3.7% to $15.2 billion, per GTRI data cited by Reuters.
Which markets are Indian garment makers targeting?
The UK, the UAE and the European Union, with Germany, France, Italy and the Netherlands named as key EU markets.
Source: Reuters (via The Star), 11 November 2026.
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