US Tariffs Cast Shadow Over India's Footwear Manufacturing Hub

In Tamil Nadu, the heart of India's non-leather footwear manufacturing, global brands like Nike, Puma, Crocs, and Adidas are facing uncertainty due to a potential 50% US tariff threat. Investments worth thousands of crores are at risk as brands consider rerouting orders through other Asian hubs.

Export Competitiveness at Stake

With a 25% tariff already undermining India's export competitiveness against regions like Vietnam and Indonesia, an additional 25% could halt business activities entirely. "Indian manufacturers will lose out on US orders, which will likely shift to Vietnam," an industry source revealed.

Apparel Sector Feels the Pressure

US retailers are urging exporters to move production to countries like Bangladesh and Vietnam. Pallab Banerjee of Pearl Global noted, "A 50% tariff isn't viable for anyone, prompting a shift in production to factories outside India."

A Wait-and-See Approach

Despite the challenges, brands are not pulling back from India yet. Decisions hinge on upcoming India-US trade talks. Simon Lee of the Taiwan Chamber of Commerce in India stated, "If the 50% tariff is applied, US orders from India may cease immediately."

Diversification as a Strategy

Gokaldas Exports is exploring new markets, with hopes pinned on the FTA with the UK. Meanwhile, brands like Puma and Adidas reaffirm India's importance as a sourcing market.