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Indian garment exporters diversify markets as US tariffs bite

Facing mounting trade tensions with the United States, India's apparel manufacturers are reassessing their export strategies and looking toward alternative markets to reduce dependency on American tariffs.

LSN India · 11 November 2026

Indian garment exporters diversify markets as US tariffs bite

Manufacturing hubs across India are grappling with the impact of escalating US trade policies on their business models. At factories like Orient Craft in Ranchi, where hundreds of workers produce garments for major British retailers including Next and Marks & Spencer, exporters are confronting a shifting landscape that threatens their traditional supply chains.

The tariff pressures have prompted Indian garment makers to recalibrate their reliance on American markets, which have historically been a significant destination for Indian textiles and apparel. With trade barriers becoming increasingly unpredictable, manufacturers are exploring opportunities in European, Asian, and other emerging markets to hedge against potential disruptions.

Industry analysts note that this pivot reflects a broader trend among Indian exporters seeking to diversify their client base and geographic exposure. The move comes as global retailers themselves reassess their sourcing strategies in response to changing trade dynamics.

The shift also highlights India's competitive advantages in garment manufacturing, which have made it an attractive alternative production destination for international brands despite tariff headwinds. However, sustained uncertainty could push some smaller manufacturers to reassess their expansion plans and capacity investments in the near term.