News

Trade & Policy

Nordic Pivot: Denmark Becomes Vital Textile Hub For India Amidst US Tariff Shocks

• By  Debanjan Chakraborty
• January 15, 2026

Global trade dynamics underwent a drastic transformation in late 2025. The United States imposed punitive reciprocal tariffs of up to 50% on Indian merchandise. This protectionist wave compels Indian exporters to aggressively seek alternative markets. Denmark has consequently emerged as a high value sanctuary. The Green Strategic Partnership signed in 2020 underpins this commercial evolution. It aligns Indian manufacturing capabilities with rigorous Scandinavian sustainability standards.

Analyzing the 2025 Export Surge

Official Ministry of Commerce data reveals a compelling growth story. India exported goods worth US$ 82.8 million to Denmark in October 2025. This figure marks a significant 30.3% increase compared to the previous year. The total import value from India to Denmark reached US$ 1.07 billion in 2024. Woven apparel led the sector with US$ 174.84 million. Knitwear segments followed at US$ 72.09 million. Home textiles contributed US$ 51.90 million while carpets and floor coverings added US$ 22.50 million. Recent data from November 2025 indicates that overall Indian textile and apparel exports grew by 9.4% globally. This momentum suggests that Danish buyers are increasing their orders to hedge against supply chain volatility elsewhere.

Corporate Powerhouses Driving Demand

Danish fashion giants provide the necessary volume to sustain this trade corridor. Bestseller A/S recorded an all-time high revenue of US$ 5.92 billion for the financial year 2024 2025. Brands such as Jack & Jones and Vero Moda continue to deepen their sourcing footprints in India. Hummel International sources approximately 14% of its global production from Indian factories. These companies demand strict environmental compliance. The European Union Eco design for Sustainable Products Regulation mandates comprehensive traceability. Leading Indian manufacturers like Welspun Living have adopted blockchain solutions to ensure farm to shelf transparency. Welspun Living reported a 53.2% increase in net profit during the second quarter of the 2025 2026 fiscal year. This financial health demonstrates the viability of diversifying away from the US market.

Future Opportunities and Regulatory Compliance

Regional competitors face mounting challenges. Bangladesh grapples with political instability and the impending loss of duty-free access upon its Least Developed Country graduation. This geopolitical vacuum presents a unique opportunity for Indian exporters to consolidate their market share. The Green Strategic Partnership facilitates crucial knowledge transfer regarding water treatment and waste management technologies. Indian suppliers must urgently adopt the Digital Product Passport to navigate the regulatory landscape. Denmark serves not merely as a destination but as a gateway to the broader European Union. Indian exporters who prioritize sustainability and digital integration will secure long term dominance in this lucrative Nordic market. 

The total import value from India to Denmark reached US$ 1.07 billion in 2024. Woven apparel led the sector with US$ 174.84 million. Knitwear segments followed at US$ 72.09 million. Home textiles contributed US$ 51.90 million while carpets and floor coverings added US$ 22.50 million. Recent data from November 2025 indicates that overall Indian textile and apparel exports grew by 9.4% globally. This momentum suggests that Danish buyers are increasing their orders to hedge against supply chain volatility elsewhere.