US tariffs India textile exports dropped by 50% due to sudden tarrifs increase by US Government. Recently India’s textile and apparel exporters are reeling from a 50% US tarrif, with nearly a third reporting turnover drops over 50%, a Confederation of Indian Textile industry (CITI) survey found.
Liquidity crises, inventory pile-ups, and shrinking orders are worsening the situation. The industry seeks a loan moratorium, raw material reforms, and urgent policy support to restore export competitiveness.
This sudden drop has sent shockwaves across India’s textile hubs — from Surat to Tiruppur — leaving exporters struggling to meet profit margins. The move is seen as part of the ongoing trade tension between the two countries, potentially reshaping global supply chains.
What Are the New US Tariffs on Indian Textiles?
According to trade analysts, the US recently increased import tariffs on certain textile categories from India, citing competitive pricing and domestic protection measures.
The tariff rates, which earlier stood between 5–10%, have now surged to 20–25% on specific cotton and synthetic fiber exports. This has made Indian textiles less competitive in the US market compared to those from countries like Vietnam and Bangladesh.
How Much Have India’s Textile Exports Declined?
Data from India’s Textile Export Promotion Council (TEPC) shows a 50% decline in exports during the last quarter, particularly in apparel, home furnishings, and cotton fabric segments.
Exporters have reported cancellation of large US orders and increased shipment delays due to higher duties.
“The tariff hike has wiped out our price advantage. Buyers are now turning to other markets,” said a leading exporter from Surat.
Impact on Indian Textile Industry and Jobs
India’s textile sector employs over 45 million workers directly and indirectly. With declining exports, small and medium enterprises (SMEs) are the worst hit.
- Reduced production has led to temporary factory shutdowns.
- Employment impact is expected in major textile clusters of Gujarat, Tamil Nadu, and Punjab.
- Rising raw material costs and declining US demand are adding further pressure.
The Federation of Indian Export Organisations (FIEO) has urged the government to intervene diplomatically and support exporters through subsidies or tariff negotiations.
Government and Industry Response
The Ministry of Commerce has acknowledged the crisis and is reportedly in talks with the US Trade Representative (USTR) to review the tariff structure.
Meanwhile, industry associations are pushing for diversification into European and Middle Eastern markets to reduce dependence on US buyers.
“We need to strengthen domestic textile demand and open new trade partnerships,” said a policy analyst from CII.
Expert Opinion – What Lies Ahead?
Experts suggest that the current phase might be temporary but could reshape India’s long-term trade strategy.
They believe India must invest in sustainable textile production, value addition, and technology adoption to maintain global competitiveness.
Conclusion
The 50% decline in textile exports underscores the fragility of global trade relations. While India seeks solutions through policy reforms and diversification, the current tariff shock serves as a reminder of the need for economic resilience and innovation in one of India’s oldest industries.
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Neeraj is a dedicated content writer specializing in agricultural schemes, government policies, and rural development in India. With extensive knowledge of the Pradhan Mantri Yojanas and related programs, Neeraj aims to provide clear, accurate, and up-to-date information to help farmers and citizens access government benefits effectively. Passionate about empowering rural communities through informative content, Neeraj is a Content writer at CWB Hindi News, brings expertise in simplifying complex topics for easy understanding.
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