Production at textile hubs in Tirupur, Noida, and Surat has come to a standstill after the US imposed a cumulative 50% tariff on Indian exports. Exporters warn that the steep duties have made Indian goods uncompetitive in the American market, which is India’s largest export destination.
The Federation of Indian Export Organisations (FIEO) said that the additional 25% tariff announced by US President Donald Trump, on top of an earlier 25%, has pushed cost disadvantages for Indian exporters to unsustainable levels.
“Textiles and apparel manufacturers in Tirupur, Noida, and Surat have halted production. The sector is losing ground to lower-cost rivals from Vietnam and Bangladesh. Seafood exporters, especially shrimp farmers, are also under stress as the US absorbs nearly 40% of India’s seafood exports,” FIEO President S C Ralhan said.
He added that nearly 55% of India’s US-bound shipments ($47–48 billion) now face pricing disadvantages of 30–35%, making them uncompetitive compared with exports from China, Vietnam, Cambodia, and other Asian countries.
Industry Concerns and Calls for Support
The Confederation of Indian Textile Industry (CITI) warned that the future of India’s textile exporters, foreign exchange earnings, and the country’s target of $100 billion in textile exports by 2030 are now at risk. CITI Chairman Rakesh Mehra urged the government to provide immediate fiscal support and ensure raw material availability.
Exporters are also seeking:
- Interest subvention schemes and export credit support to sustain liquidity
- Low-cost credit for MSMEs backed by government and RBI directives
- A moratorium on loan repayments for up to one year
Other labour-intensive export sectors such as leather, ceramics, chemicals, handicrafts, and carpets are also facing sharp losses, with risks of delayed orders, cancellations, and rising competition from European and Southeast Asian producers.
The Road Ahead
Exporters believe that urgent diplomatic engagement with the US and stronger promotion of Brand India will be essential to regain competitiveness. However, until government support arrives, India’s textile and apparel sector faces production shutdowns, job losses, and significant export setbacks.
Nithin Rosh 
Leslie Rajan