US Tariffs Trigger Shutdowns in India’s Top Textile Hubs as Orders Vanish

US tariffs slam Indian textile sector hard. Factories in Tirupur, Noida, Surat halt production amid soaring costs. Exporters face tough competition, seek urgent government aid.

Narendra Modi
Narendra Modi (Photo: @AmanChopra_ / X)

US stands as largest market for Indian textiles, with annual exports exceeding $10 billion. Recent 50% duty hike places India under heaviest tariff burden in Asia. Indian Express reports shutdowns already underway in these key cities.

Federation of Indian Export Organisations confirms factories forced to stop due to extra duties. Costs rise sharply, eroding market edge. Apparel and garment makers hit worst, alongside other textile segments, per The Wire.

Major US buyers – Amazon, Walmart, Target, Gap – cancel orders. They refuse to pass added costs to consumers, demand price cuts instead.

Experts forecast steep drop: US exports may fall 40-45% in 2025-26 fiscal year compared to prior period.

Former top diplomats blame Narendra Modi government for mishandling issue. Foreign Minister S Jaishankar fails to navigate Trump administration’s second term effectively, they say.

Ex-Foreign Secretary Vivek Katju urges accountability: Modi team owes answers to Indian public on this trade fiasco.

Read more: US Imposes 50% Tariff on India: Modi Calls for Domestic Production Amid High-Level Talks

Government remains silent on formal response so far. Industry pleads for swift intervention to revive operations and safeguard jobs.

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