Bengaluru: Impact of US Tariffs on India’s Textile Industry
India’s textiles and apparel industry is in a crisis due to steep tariffs imposed by the United States. After President Donald Trump’s decision to add a 25% duty, Indian garments now face a total of 50% in tariffs—the highest globally.
This change has hit production hubs like Tirupur, Noida, and Surat hard. Many factories are slowing down or even stopping operations. Exporters are facing order cancellations and financial struggles, putting jobs at risk, especially for women and migrant workers who make up a large part of the workforce.
Loss of Competitiveness
Industry experts express serious concern. With Indian apparel struggling against tariffs, they now face a significant price disadvantage of 30-35% compared to competitors from Vietnam, Bangladesh, and China. Many small and medium enterprises are particularly vulnerable, as rising costs cut into their profits.
Ajoy Bhattacharya, Regional Director of the Clothing Manufacturers Association of India (CMAI), highlights the urgency. He mentions that larger brands are avoiding new orders due to these tariffs, making it tough for Indian exporters to compete. He frames this challenge as an opportunity for India to innovate and improve its textile technology.
Need for Government Action
The Confederation of Indian Textile Industry (CITI) has warned that the survival of exporters and the goal to reach $100 billion in textile exports by 2030 are at risk. They’re calling for immediate government intervention, like interest support and faster processing of export rebates, to help maintain liquidity for exporters.
The government is aware of the crisis and is looking into ways to address it. They are exploring new markets in Asia, Africa, and Latin America and have temporarily waived duties on cotton imports to lower costs for textile mills.
Social Impact
The fallout from these tariffs extends beyond economics. Millions of factory jobs are at stake. Many workers are women from rural areas, and a drop in orders could lead to job losses or wage cuts, affecting children’s education and healthcare. If the industry continues to struggle, school dropouts and delays in medical care could rise.
Looking Forward
As the situation unfolds, key factors like cotton prices and global demand will shape the sector’s future. While immediate measures are necessary, long-term strategies must focus on developing local technology and ensuring product quality to stay competitive.
Bhattacharya emphasizes that this crisis shouldn’t be viewed solely as a setback but as an opportunity to strengthen India’s textile sector. By investing in self-sufficiency and aligning quality with global standards, India can rebuild its competitive edge.
Without prompt action and a solid long-term plan, India risks losing its place in the global textile market—but with focused efforts, there’s potential for recovery and growth.
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GARMENT MERCHANTS WANT FIGHTBACK, US TARIFF BLOW TO INDIA GARMENTS, ANXIOUS MANUFACTURERS' ASSOCIATION OFFICIAL CALLS FOR SELF-RELIANCE TO TACKLE US TARIFF BLOW
