US tariffs threaten to slow Indian garment sector’s growth, hit profitability

India’s readymade garment makers’ revenue in FY25 rose 8% to ₹5 trillion, split into ₹1.4 trillion worth of exports and ₹3.6 trillion in domestic sales. Hit by the US tariffs, exports are likely to decline to ₹1.2 trillion in FY26. However, domestic sales could rise to ₹4 trillion.

​India’s readymade garment makers’ revenue in FY25 rose 8% to ₹5 trillion, split into ₹1.4 trillion worth of exports and ₹3.6 trillion in domestic sales. Hit by the US tariffs, exports are likely to decline to ₹1.2 trillion in FY26. However, domestic sales could rise to ₹4 trillion.