The Indian textile export sector, a vital part of the nation’s economy, is facing intense strain after the US imposed new tariffs. Exporters are confronting major challenges, including disrupted orders, shrinking margins, and fears of large-scale job losses.
Many companies are urgently revisiting their strategies, with some top exporters flying to the US to renegotiate with buyers. However, steep discount demands are leaving manufacturers in a difficult position. According to Vijay Agarwal, Chairman of the Cotton Textiles Export Promotion Council, nearly half a million jobs, both direct and indirect, could be at risk if the crisis deepens.
The tariffs have widened India’s competitive gap with countries like Bangladesh, Vietnam, and Cambodia, which face far lower US duties. This disadvantage makes it difficult for Indian exporters to retain buyers in the American market.
In response, exporters are exploring alternative markets in Europe, the Middle East, and Africa. Yet, establishing new trade relationships will take time and effort, especially given the aggressive competition from other textile-producing nations.
Crisil Ratings has forecasted that the revenue growth of readymade garment manufacturers will drop by half, affecting industry stability and curbing future investments. Industry leaders are urging the government to step in with relief measures, including easing repayment terms, providing incentives, and supporting diversification to new markets. Without strong policy intervention, India risks losing its competitive edge in global textiles.
