Priyanka Tiwari
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India’s home textiles and made-ups segment, responsible for exporting fabric-based home décor like bed linen, towels, and curtains, is facing severe setbacks. According to the HomeTextile Exporters Welfare Association (HEWA), approximately $2 billion (₹17,094 crore) worth of export orders are either under renegotiation or on hold.
India exports nearly $37 billion worth of textiles annually, with garments being the largest contributor at $16 billion, followed by home textiles at $10 billion. However, over 60% of home textile exports target the US, making this segment highly vulnerable to American market fluctuations.
US Buyers Push for 50% Discounts Amid Tariff Shifts
“Exporters have no choice but to meet these demands, especially with the US being our biggest buyer. However, the recent tariff changes might help us compete better against countries like China, Vietnam, and Bangladesh,” said Vikas Singh Chauhan, Director at HEWA.
Comparative Tariffs May Offer Long-Term Edge
New US tariffs present a potential opportunity for India. While India faces a 26% tariff, its competitors have been hit harder:
Vietnam: 46%
Bangladesh: 37%
Cambodia: 49%
Pakistan: 29%
China: 54% to 245% (varied by item)
Despite these advantages, 90% of Indian exporters in this segment are currently feeling the heat, Chauhan said, with his company alone seeing $2 million worth of orders stuck.
Call for Diversification as Russia Emerges as New Market
Some exporters are proactively seeking alternatives. One exporter noted, “Given the geopolitical uncertainties, I started exploring the Russian market a year and a half ago. Demand is growing, and our quality is getting recognized there.”
Garment Sector Also Struggles Under Tariff Pressure
While India’s garment exports have not scaled as expected due to local focus and quality issues, the sector too faces pressure from tariff negotiations. Buyers are asking to split or absorb 10% tariffs, impacting thin-margin businesses.
“Garment exporters can’t absorb the full 10%. We’re seeing selective discounting, but overall margins are being squeezed,” said Rahul Mehta, chief mentor at CMAI.
Concerns Over US Consumer Demand
Experts warn that rising prices due to tariffs might reduce consumer demand in the US, indirectly hurting Indian exporters. “Even with lower prices, if consumers cut back, our demand drops,” Mehta added.
India’s Opportunity – But Will It Deliver?
Gurudas Aras, a textile industry advisor, believes India is well-positioned in the long run but warns against complacency. “India has missed past opportunities in textiles due to policy delays and lack of coordination. We must act now.”
Textile Minister Giriraj Singh recently projected that India’s textile industry could grow to $350 billion by 2030, creating 3.5 crore jobs—but realizing this goal depends on how well India adapts to global shifts.
