India's garment exporters are optimistic about a recovery in the second half of FY27, thanks to a reduction in US tariffs from 50% to 10%. This change is expected to bring back buyers, although the benefits will only be seen starting October, as most orders for the first half of the fiscal year were booked at higher tariffs. Industry leaders like Gokaldas Exports and Kitex Garments report that while the high tariffs had hurt their competitiveness against countries like Bangladesh, the easing of these tariffs is prompting a more favorable view of Indian products. Revenue growth is projected to be between 8-11% for FY27, with margins expected to recover by approximately 200 basis points year-on-year. However, challenges remain, including rising input costs due to the ongoing conflict in West Asia, which has increased prices for essential materials by 20-25%. Exporters are also concerned about the uncertainty surrounding the extension of the Rebate of State and Central Levies and Taxes (RoSCTL) scheme, which is set to expire on September 30. This uncertainty complicates long-term planning as exporters seek to diversify their markets beyond the US.