US Tariffs Halt Production in India’s Export Hubs
The sharp rise in U.S. import duties has forced textile and apparel units in Tirupur, Noida, and Surat to halt operations. The new 50% tariffs on Indian goods have severely undercut their cost competitiveness, leaving exporters unable to keep production lines running.
Exporters Warn of Huge Disadvantages
The Federation of Indian Export Organisations (FIEO) said that higher tariffs have erased India’s previous cost edge. Exporters now face disadvantages of up to 35% compared to rivals in Vietnam and Bangladesh. This has led to widespread order cancellations, shipment delays, and rising uncertainty in the garment sector.
Broad Economic Fallout
The textile industry, a major contributor to India’s export economy, faces heavy disruption as a result of the tariffs. Analysts warn of job losses, weakened supply chain links, and declining market share for Indian products abroad. The blow is particularly severe for small and medium enterprises in key hubs, where thousands of workers depend on daily production.
