Western consumer sentiment is proving increasingly resilient to tariffs and geopolitical disruptions, helping sustain an improvement in order flows, said Pallab Banerjee, Managing Director of Pearl Global Industries, one of India’s largest listed garment exporters.
Banerjee said there had been significant negativity in the market since the start of the Ukraine war in 2022, with consumers holding back on purchases, but that sentiment had changed over the last eight to nine months.
“It’s a sad thing to say. But what we found is that consumer behavior definitely didn’t get impacted after the Iran war in the Western market. US or Europe, we didn’t see any drop of sales,” Banerjee told FE.
With a total capacity of 101 million pieces a year, including its own and outsourced facilities, the company caters to value retailers and high-end fashion brands across the US, EU, UK, Japan and Australia. Its customers include Gap, Chico’s, Kohl’s, Ralph Lauren and Target. Pearl Global has a diversified manufacturing base including South Asia (India and Bangladesh), Southeast Asia (Vietnam and Indonesia) and Central America (Guatemala).
Record Q1 Performance
Pearl Global reported its highest-ever quarterly revenue of ₹1,528 crore in Q1FY27, while shipments rose to a record 20.8 million pieces. Banerjee attributed the record volumes to improving certainty around tariff rates and brands stepping up forecasting amid geopolitical tensions.
“Last year, this time we had this huge dark cloud of tariff. They (buyers) didn’t know whether it would be 10%, 20%, 30%. India had 50%” Banerjee said.
The tariff burden on Indian exports to the US subsequently eased sharply. In August 2025, tariffs on Indian goods had reached as high as 50%, before the US Supreme Court struck down the legal basis for several of the sweeping tariffs in February 2026. Trump then imposed a temporary 10% global tariff under a different legal provision.
For US retailers and importers sourcing from India, the sharp reduction in tariffs improved the economics of importing from the country, Banerjee said. “People who are importing from India, for them, it is like 40% cheaper because then tariff came down from 50% to 10%.”
Even before tariffs, Pearl Global has been reducing its dependence on the US market. In 2021-22, the US accounted for 85% of its $200 million revenue. This has since declined to 50-55% of its $550 million revenue in FY26.
“If I talk of US-based customer, then it could be maybe 57%-58% but the goods landing in the US is below 50%” he said.
The share of Canada and Japan, and the European Union, ranges between 11%-15% while the UK and Australia is around 3-5%
A significant share of Pearl Global’s exports currently comes from its Bangladesh operations. However, Banerjee expects India’s share of exports to the UK and European markets to increase following the country’s trade agreements with these markets.
India historically faced a tariff disadvantage in the UK market, with exports attracting tariffs of 10-12%, while competing sourcing destinations such as Bangladesh, Cambodia and Vietnam enjoyed duty-free access. The India-UK Free Trade Agreement, which came into force from July, provides greater market access and removes several trade barriers for textile and apparel sector.
Banerjee, however, said manufacturing costs in Bangladesh remain lower than in India, prompting Pearl Global to expand its presence in smaller cities and towns to narrow the cost gap. “We have gone into this tier two 2 & 3 where the cost of manufacturing is lesser, and trying to come as close as to Bangladesh,” he said