Gaming
From Valsad to SC: Justice Pardiwala holds fate of $3 billion gaming industry, 2 lakh jobs
US tariff hike to 50% to halve India’s garment export growth in FY26
The US move places Indian exporters at a significant disadvantage compared to competitors in China, Bangladesh and Vietnam.
Post 50% tariffs, Indian garmet exports to the US may be minimal.
India’s readymade garment (RMG) industry is bracing for a severe slowdown this fiscal, with revenue growth expected to nearly halve to 3–5% from 8–10% last year, as the US doubles tariffs on imports from India to 50% starting August 27, CRISIL Ratings told CNBCTV-18.
Exporters deriving over 40% of their revenues from the US are to be hit hardest, with profitability seen contracting by 300 to 500 basis points.
The US move places Indian exporters at a significant disadvantage compared to competitors in China, Bangladesh and Vietnam. America is India’s single largest RMG export destination, accounting for about one-third of outbound shipments. In FY25, India exported garments worth $16 billion, with $5.3 billion going to the US. CRISIL estimates this share could decline sharply to 20–25% in FY26.
Post 50% tariffs, Indian exports to the US may be minimal, the report noted. Exports remain a vital revenue stream for the sector, contributing 27% of total revenue last fiscal. However, domestic demand- nearly three-fourths of the market, is projected to grow at 8–10% this year, supported by strong economic activity, lower interest rates and reduced taxes, partially cushioning the export blow.
The tariff shock is also expected to strain the industry’s credit health. Traditional export hubs like Tiruppur in Tamil Nadu, India’s knitwear capital housing over 10,000 garmenting units are among the worst affected.
SPOTLIGHT
Big-ticket buying decisions now demand more than just logic and product specs – they require trust, emotional connection, and brand stories that resonate.
Read MoreExplained: What the Online Gaming Bill means for the industry, users and platforms
The Online Gaming Bill 2025 imposes severe penalties, allows warrantless search and seizure, and empowers a central authority to regulate the digital gaming ecosystem. It is expected to disrupt platforms, payment systems, and advertising in the sector. Here's all you need to know about the bill.