US buyers are actively seeking deals with Indian apparel exporters, but pricing tensions are emerging as a key challenge, according to a report by the Economic Times. K.M. Subramanian, president of the Tirupur Exporters Association (TEA), stated: "Enquiries are coming, but US buyers are offering lower prices."
Pricing Pressure from US Buyers
The United States, which accounts for nearly one-third of India's total apparel exports, is exerting downward pressure on prices. Sudhir Dhingra, owner of Orient Craft, revealed that for orders for the Spring 2027 season, buyers are demanding discounts of up to 10%. Indian exporters have limited leverage, as competing sourcing destinations such as Vietnam, Indonesia, and Cambodia have been more successful in capitalising on the China-plus-one opportunity.
"Enquiries are coming, but US buyers are offering lower prices." — K.M. Subramanian, President, Tirupur Exporters Association
India's Export Decline and Competitive Landscape
India's readymade garment (RMG) exports have declined for the sixth consecutive month in May 2026, shrinking year-on-year by 14.1% . The primary driver is weaker demand in the US market. Industry executives cited several factors behind the stronger performance of Vietnam, Indonesia, and Cambodia:
- Better cost competitiveness
- More diversified product offerings
- Efficient supply chains
- Shorter lead times
- Greater buyer confidence
These advantages have allowed these countries to capture market share that might otherwise have gone to India.
FTAs Provide Encouragement
Despite the headwinds, Sudhir Dhingra noted that the Free Trade Agreements with the UK and Europe have provided some encouragement to Indian apparel exporters. While not a panacea, these trade pacts offer preferential market access that could partially offset the pricing pressures from the US market.
| Sector | Key Data | Source |
|---|---|---|
| India RMG exports, May 2026 | -14.1% YoY decline | Economic Times |
| US share of India's apparel exports | ~1/3 | Economic Times |
| Discount demanded by US buyers | Up to 10% | Orient Craft |
| Competing destinations | Vietnam, Indonesia, Cambodia | Economic Times |
The situation underscores India's vulnerability to its heavy reliance on the US market and the need to enhance cost competitiveness and product diversification to rival emerging apparel sourcing hubs.
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