Tariff changes could open new opportunities for Indian textiles : Arvind’s Kulin Lalbhai

NEW DELHI : Mr. Kulin Lalbhai, Vice-Chairman of Arvind believes that while higher US tariffs on textile imports may lead to increased costs for American buyers and short-term uncertainty, they also open up new opportunities for the Indian textiles industry.

“If we are able to land all of these negotiations in the right place, it could definitely be a step change for the entire sector,” he said.

Lalbhai was speaking in the context of new reciprocal tariff measures announced by US President Donald Trump. Under the policy, the US will impose tariffs amounting to half of what a trading partner levies on American goods. For India, this translates to a 27% tariff on exports to the US, a figure that includes both monetary and non-monetary trade barriers.

The ongoing geopolitical realignment has already shifted global trade patterns, with Vietnam and Bangladesh benefiting from businesses diversifying away from China.

India, however, has faced challenges in securing a larger share of this market due to tariff and market access issues. Now, with trade negotiations progressing between India and major economies like the UK, EU, and the US, Lalbhai sees potential for significant growth in the sector.

India currently faces lower tariffs compared to some competing nations, which presents a relative advantage. Lalbhai emphasised the importance of ongoing bilateral trade discussions, stating, “This is the chance to see how US-India trade can grow to that $500 billion mark. There are a lot of sectors, such as textiles, footwear, and toys, where a zero-for-zero tariff opportunity could emerge, making the future very exciting.”

The latest US tariff announcement could also accelerate India’s trade talks with the EU and the UK, as global trade dynamics continue to evolve. However, he cautioned that if significant cost increases occur in the US, it could affect demand in the short term.

As discussions unfold in the coming weeks, the Indian textile sector remains watchful, with hopes that favorable trade agreements could unlock new opportunities while mitigating potential risks.

Source : CNBCTV