New Delhi [India], July 15 (ANI): India could see a significant boost in its apparel exports to the United States amid ongoing tariff tensions involving key Asian exporters, according to a recent report by the State Bank of India (SBI).

The report highlighted that India, which currently holds a 6 per cent share in the US apparel imports market, stands to benefit if it captures an additional 5 per cent share from competing countries. This potential gain could translate into a 0.1 per cent addition to India's GDP.

The report noted that apart from its strong position in chemicals, India has a Revealed Comparative Advantage (RCA) in textiles and exports apparel and accessories to the United States.

However, it faces stiff competition from countries like Bangladesh, Cambodia, Indonesia, and Vietnam in this segment. Of these, Vietnam currently enjoys a more favorable tariff structure.

The report stated that for the other countries, Bangladesh, Cambodia, and Indonesia, the current US tariff structure places them at a disadvantage compared to India.

It stated 'India can capture apparel exports share of Bangladesh, Cambodia and Indonesia'.

The analysis is supported by US import data from 2024. The top five items the US imports from Bangladesh, Cambodia, and Indonesia prominently include 'Apparel & Accessories,' with Bangladesh contributing a massive 88.2 per cent of its US exports in this category, Cambodia at 30.8 per cent, and Indonesia at 15.3 per cent.

These countries are now likely to face higher tariffs from the US, opening up a window of opportunity for India to expand its footprint.

In addition to apparel, SBI's report identified further export growth potential for India in other sectors, particularly in countries affected by US tariff changes.

These include agricultural goods, livestock and its products, waste and scrap, especially metal scrap, and various processed animal and vegetable products.

The report concluded that India should actively leverage this trade shift and strengthen its export presence, especially in categories where it holds a comparative advantage.

By capitalizing on emerging opportunities amid changing global trade dynamics, India can not only boost its exports but also drive incremental growth in its economy. (ANI)