Textile and toy exporters plan to increase capacity utilization from the current 70% to 90-95% to meet expected demand for additional orders due to high tariffs on Chinese imports as high as 245%, which prevents U.S. buyers from importing from China.
“April to September is usually the lean period for miniature, small and medium-sized enterprise (MSME) clothing exporters because they are mainly summer clothing manufacturers, but due to high tariffs on China, the possibility of certain businesses moving from China to India is growing, and during the lean period, the exporters are busy during the lean period. “If Indian exporters can fill the supply chain gap in the 245% tariff on Chinese imports, we have asked from buyers in the U.S. ”
The challenge for Indian exporters is to match prices offered by Chinese suppliers before tariffs imposed by the U.S. government.
“We have enough capabilities based on the current increase in orders. However, with more inquiries from existing and new customers, our current capabilities may soon expand.”
Shabir added: “Building new factories requires a lot of investment and we will be cautious given the uncertainty of tariffs. This is a growing situation where Chinese companies have been deeply rooted in a global supply chain led by the United States, providing opportunities for Indian MSMES and Indian MSMEs, but at the same time, we have a serious secret to Indian SMEs.
India is also better positioned than exporters of its counterparts such as Vietnam and Indonesia.
India’s ready-to-wear exports from April to January 25 were US$14.45 billion and toy exports were US$497.27 million.
