India may gain in garmenting and low-end engineering as Trump Tariffs drive global supply chain reset: Prashant Khemka

India stands to benefit from the U.S.’s new tariff regime, especially in labour-intensive industries such as garmenting, low-end engineering goods, and certain ancillary sectors, according to Prashant Khemka, founder of White Oak Capital Management. He emphasized that sectors relying heavily on manual or low-skilled labour like garmenting are unlikely to move production back to the U.S., making India a more attractive manufacturing base.

The global supply chain shift, accelerated by U.S. trade actions against China, is prompting manufacturers to seek alternative locations. “India, which previously faced disadvantages compared to countries like Vietnam or Bangladesh, will become more competitive under the new trade dynamics,” Khemka noted.

However, he expressed caution regarding capital-intensive sectors such as automobiles, where production is more likely to shift back to the U.S. due to automation, an area where India lacks strong presence.

Khemka also warned that Indian IT services could face indirect pressure. While not directly affected by tariffs, slower U.S. growth could impact IT budgets, as the U.S. contributes nearly 40% of revenue for Indian IT firms. “Any hit to corporate earnings and banking in the U.S. will trickle down to IT spending,” he added.