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Reciprocal Tariff Could Be Favorable For India’s Textile Sector — Read Systematix' Analysis

  • Reciprocal tariffs announced by US President Donald Trump could be favorable for India's textile sector, providing a competitive edge for sourcing US apparel brands.
  • India has strong demand visibility, comparatively lower tariffs, rising labor costs in Vietnam, a strong production base, and government support in the textile sector.
  • The differential in tariff rates gives India an advantage over higher-tariff countries, making it an attractive sourcing destination for US apparel brands like GAP and Walmart.
  • Despite near-term uncertainties, Systematix Institutional Equities remains optimistic about the prospects of India's textile sector in light of the reciprocal tariffs.

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