Key facts
- Orient Craft's US share of sales fell to under 10% from 84% before the tariffs, Dhingra said.
- Gokaldas Exports aims to lift Europe to 25% to 30% of revenue from 15% to 16%, managing director Sivaramkrishnan Ganapathi said.
- US duties on Indian products are currently 10% under Section 301, plus base tariffs of 6% to 12%, per the report.
- India's apparel exports to the US fell 9.8% to $4.0 billion in April to August, the Global Trade Research Institute said.
- The US share of Indian exports fell to 25.4% at the end of August from 28.3% in 2022, according to industry estimates.
- Ranchi is drawing garment factories with subsidies, easier land access and its workforce, Reuters reported after visiting three plants.
Orient Craft's factory in Ranchi, in the eastern state of Jharkhand, once sent most of its output to the US. Founder Sudhir Dhingra, 77, has cut shipments there since Washington raised tariffs on Indian goods, which rose to as much as 50% in 2025 and hit orders from customers including American Eagle and Gap, Reuters reported on November 11, 2026.
Dhingra said US buyers canceled orders or sought discounts after US President Donald Trump first announced the hikes in April 2025, with some asking suppliers to absorb 25% of the duty even though manufacturers' margins are less than 10%. He has moved sales to Britain, Europe and, to a lesser extent, India. The US now accounts for less than 10% of sales, down from 84% before the tariffs, with annual exports of about 1.5 billion rupees ($15.82 million).
"Even if there is a deal, what is the guarantee that it will hold water?" Dhingra said. "I don't wish to see that sword on my head." US duties on Indian products are currently 10% under Section 301, a US law allowing tariffs on imports, as well as base tariffs from 6% to 12%.
Gokaldas Exports, which employs more than 53,000 people, is turning to Europe. Managing director Sivaramkrishnan Ganapathi said the shift is not temporary and the company aims to raise Europe's revenue share to 25% to 30% over the next 3 to 5 years from 15% to 16%, reducing the US share to 35% to 40% from 50% to 55%.
In April to August, India's textile, apparel and home-furnishings exports to the US fell 9.8% to $4.0 billion, while shipments to other markets rose 3.7% to $15.2 billion, according to the Global Trade Research Institute. The US share of Indian exports fell to 25.4% at the end of August from 28.3% in 2022, according to industry estimates.
Exporters said US tariff uncertainty, higher shipping costs and US buyers' discount demands have squeezed margins, making other markets including the UAE, UK and EU more attractive. Indian clothing gets duty-free access to Britain under the India-UK trade deal that came into effect in July, while a similar EU agreement could eliminate duties of 12% to 17%. "Germany, France, Italy and the Netherlands are key targets," said A. Sakthivel, chairman of the Apparel Export Promotion Council.
Ranchi, best known for coal and iron ore, is now luring garment factories with subsidies, easier land access and its workforce. Reuters visited three factories in and around the city, together employing about 8,000 people. Mrityunjay Singh, senior vice president of operations at Gokaldas, said the location has at least a 10% efficiency advantage over other sites; the company has two factories in Ranchi and plans a third, creating up to 4,600 jobs.
"We can't rely on a single market, product or buyer," said Birendra Rawat of Ranchi-based Auburn Design, which makes Jockey underwear and clothing for local licensee Page Industries and produces 5 million to 6 million garments a month for sale in India and neighboring countries. India's own apparel market, valued at $150 billion and growing 7% to 8% annually, provides a buffer through steadier cash flows and demand, the report said.
"Diversification is becoming a structural strategy, especially for exporters heavily exposed to the US market," said Chandrima Chatterjee, secretary general of the Confederation of Indian Textile Industry. Exporters said they would not abandon the US completely given its size and longstanding buyer relationships, but the tariff shock meant it was unlikely to regain its former dominance even if duties eased.