Exporters rush to close spring '27 US orders

Indian apparel exporters are rushing to complete spring orders destined for the United States as the House of Representatives approved a bill allowing President Donald Trump to impose tariffs as high as 100% on Russia's energy trading partners, which could encompass New Delhi. Presently, India's apparel exports are subject to 10% tariffs in the U.S. The potential escalation of tariffs has sparked a surge in activity across labor-intensive industries, despite India's merchandise exports experiencing a notable rebound in August.

Apparel exporters are pushing to finalize Spring 2027 orders and expedite shipments, despite pressure from U.S. buyers for price reductions. Spring shipments are typically dispatched in January-February, but many producers have already secured orders, enabling certain shipments to be accelerated. Exporters are keen to dispatch these orders as overall apparel exports have declined by 9.10% in the first five months of the current fiscal year to $6,149.66 million compared to $6,149.66 million in the same period last year.

India's merchandise exports from April to August of FY27 amounted to $215.91 billion, compared to $183.21 billion in the same period of FY26, reflecting a growth of 17.85%. Sanjay Jain, group CEO of PDS Ltd., noted that exporters are accelerating Spring shipments as U.S. brands and importers seek to minimize their exposure to a possible tariff increase.

Jain, chairman of the ICC Textile Panel and managing director of TT Ltd., also highlighted that the proposed tariff must be considered in the context of ongoing India-U.S. trade negotiations.