US market share in Indian apparel exports is set to shrink following US tariff hike, with apparel exporters seeing a 6-9 per cent dip in revenues in FY26, ICRA recently projected.
Margins in the sector are likely to contract by 200-300 bps due to discounts or inability to fully pass on tariffs.
Moderation in credit metrics is envisaged for apparel and home textile exporters.