Overview

• Union minister Giriraj Singh said India is pursuing opportunities across 40 countries and plans to leverage FTAs with 15 partners after the U.S. move to levy 50% duties.
• Industry accounts describe cancelled orders, rising inventories, deep discounting, and curtailed production in key hubs such as Noida and Tiruppur.
• An Emkay Research report says the cumulative 50% tariff is too steep to absorb, urging targeted incentives beyond recent GST cuts and cotton duty exemptions.
• Exporters report U.S. buyers continuing some orders at 5–8% discounts, with European customers now seeking price cuts as well, pressuring already thin margins.
• A pre-tariff shipping rush lifted July exports 9.1% year on year, but OTEXA and CITI data show Vietnam and Bangladesh gaining U.S. share as sourcing shifts accelerate.