Industry experts warn that nearly 25% of India’s textile exports could be hit over the next six months due to the US raising tariffs on Indian imports to 50 per cent.
The United States is India’s largest apparel market, and exporters are already seeing order cancellations.
The steep tariffs are expected to dent competitiveness, although duty free cotton imports have been extended till December 31, offering temporary relief.
Confederation of Indian Textile Industry’s Chandrima Chatterjee said exporters face a 20–25 per cent loss, even after adjusting strategies. Without re-orientation, losses could rise to 28 per cent.
The government’s extension of cotton duty exemption will help reduce input costs by narrowing the 10–15 per cent price gap between domestic and international cotton, making Indian textiles slightly more competitive.
Apparel Export Promotion Council chairman Sudhir Sekhri called the tariffs deeply concerning, given America’s importance as a market.
He assured government support but stressed the urgent need to explore alternate destinations and leverage free trade agreements to reduce dependency on the US.
