Indian textile exporters are turning to Europe, offering discounts to offset US tariffs.
Industry officials said Indian textile exporters are seeking new buyers in Europe and offering discounts to existing US customers to protect them from the impact of steep US tariffs of up to 50%.
President Donald Trump doubled tariffs on Indian imports in August, making them among the highest for any trading partner, affecting goods and products ranging from clothing and jewelry to shrimp.
A Mumbai-based textile exporter, speaking on condition of anonymity before signing export contracts, said his company is prioritizing diversification into EU markets and that an imminent trade agreement with the bloc would help boost shipments from India.
Trade negotiations between India and the European Union have entered a decisive phase, as their teams work intensively to meet the year-end target of signing a free trade agreement.
The European Union is India's largest trading partner, with bilateral trade expected to reach $137.5 billion in the fiscal year ending March 2024, a nearly 90% increase over the past decade.
Textile exporters said Indian exporters are accelerating efforts to meet the EU's stringent standards on chemicals, product labeling, and ethical sourcing.
Rahul Mehta, whose website describes him as the chief patron of the Indian Textile Manufacturers Association, said exporters are upgrading production facilities to meet these standards.
Mehta further said that exporters are also keen to reduce their dependence on the United States.
In the fiscal year ending March 2025, the United States was India's largest textile and apparel market, accounting for about 29% of total exports of approximately $38 billion.
Vijay Kumar Agarwal, president of Mumbai-based Creative Group, whose US exports account for 89% of its total exports, said some exporters have started offering discounts to retain US customers.
Aggarwal said that if US tariffs continue to rise, the company could lose 6,000 to 7,000 of its 15,000 employees and consider shifting production to Oman or neighboring Bangladesh after six months.
