Mumbai, Aug. 26 -- Revenue growth of the domestic readymade garment (RMG) industry is projected to slow to 3-5% this fiscal year, after the US imposed a steep 50% duty on India's imports to the world's largest economy.

The tariffs, which take effect from Wednesday, could crimp profitability of garment makers, likely straining their financial health, according to a note from ratings agency Crisil released on Tuesday.

The impact will vary, hitting some firms harder than the others, especially those that generate over 40% of their revenue from the US. Crisil expects the share of the US in India's RMG exports to fall from 33% in FY25 to 20-25% this fiscal year. Garment makers Arvind Ltd, Pearl Global and Gokaldas Exports are among the major...