US tariff to cut India’s readymade garment revenue growth by half, says CRISIL
In FY25, India exported garments worth $16 billion, of which a third went to the US. CRISIL estimates that the US share in India’s garment exports will fall to 20% to 25% in FY26, as higher tariffs prompt American retailers to shift sourcing elsewhere. Exports are crucial for the readymade garment industry as they accounted for over a quarter (27%) of the industry’s revenue last fiscal.
In FY25, India exported garments worth $16 billion, of which a third went to the US. CRISIL estimates that the US share in India’s garment exports will fall to 20% to 25% in FY26, as higher tariffs prompt American retailers to shift sourcing elsewhere. Exports are crucial for the readymade garment industry as they accounted for over a quarter (27%) of the industry’s revenue last fiscal.
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