US tariffs on textiles: One-third exporters lost half revenue
A recent survey by the Confederation of Indian Textile Industry (CITI) shows that one-third of India's textile exporters lost almost half their revenue in just three months.
The reason? The US slapped a steep 50% tariff on Indian textiles starting August 27, 2025, making it much tougher for Indian products to compete.
US is India's biggest textile buyer
The US is India's biggest textile buyer, accounting for about 28% of export value—roughly $11 billion last year.
Now, with India facing the highest tariff among competitors (Bangladesh and Vietnam pay just 20%), exporters are scrambling.
Most are stuck with unsold inventory and have had to offer discounts up to 25%, while buyers delay payments or cut orders.
Industry leaders urge government for help
With cash flow drying up, industry leaders are urging the government for help—like loan breaks and easier credit—to keep businesses afloat.
Experts warn these tariffs could wipe out $5-8 billion in exports and slow GDP growth by up to 0.6%.
That means fewer jobs in a sector where millions depend on steady work.