US Tariff War / These countries are getting ruined by Trump's tariffs! This is how India can benefit

US Tariff War: US President Donald Trump has created a stir in the global textile market by imposing heavy tariffs on countries like Bangladesh, Cambodia and Indonesia. For these countries, this tariff is no less than a major economic shock, but for India it has turned out to be a golden opportunity. A recent report by the State Bank of India (SBI) claims that by taking advantage of these tariffs, India can take its textile exports to new heights. Let us know how India can capitalize on this opportunity and why the condition of countries like Bangladesh is getting worse.

Why is this a lottery-like opportunity for India?

According to the SBI report, the US textile import market is very large, and India's share in it is currently only 6 percent. If India increases this share by another 5 percent, it can prove to be a game-changer for the country's economy. This can increase India's GDP by 0.1 percent. India already has a strong hold in the chemical and textile industry. Now the new tariff rules of America have given India a chance to move further ahead in these areas.

The report clearly states that countries like Bangladesh, Cambodia and Indonesia are suffering huge losses due to strict tax rules of America. Textile exports from these countries will now become expensive, due to which American buyers can turn to cheap and reliable options like India. That is, India has a great opportunity to snatch the market share of these countries.

Why did the condition of Bangladesh, Cambodia, Indonesia worsen?

If we look at the data of 2024, then America imports the most clothes and related items from these countries. Bangladesh sends 88.2 percent of its total exports to America in the form of clothes. At the same time, Cambodia exports 30.8 percent and Indonesia exports 15.3 percent of clothes. But Trump's new tariff rules have broken the back of these countries. Now they will have to pay more tax to America, due to which their clothes will become expensive in the American market.

Bangladesh's textile industry is the backbone of its economy, which accounts for more than 80 percent of exports and employs about 4 million people. But the 35 percent tariff has put it in trouble. Cambodia and Indonesia are also affected by this tariff, which is reducing their competitive ability. On the other hand, India has only a 10 percent baseline tariff, which makes it cheaper and attractive in the US market.

Not just textiles, India will shine in these areas too

The SBI report also states that India can benefit not only in the textile industry but also in many other sectors. India can strengthen its hold in areas like agricultural goods, livestock and products made from them. Due to the cost of imports from the countries on which the US has increased tariffs, India can also get new orders in these sectors.

The report suggests that India should take full advantage of this trade change. Especially in those sectors where India is already strong. If India moves forward with the right strategy, it can make its mark in the global market not only in textiles but also in many other sectors.