The Indian textile industry is staring at a severe crisis after the United States imposed a 50% tariff on imports, a move that threatens nearly five lakh jobs and could devastate an export sector where 28% of shipments go to the US.
Exporters in Tiruppur, India’s knitwear hub, are rushing shipments worth ₹2,000 crore monthly to beat the August 27 deadline, after which the tariffs double. Goods landing in the US after September 17 will face the steep duties.
“This is damage control mode. At 50% tariffs, exports cannot be sustained,” said Kumar Duraiswamy of the Tiruppur Exporters Association. The Confederation of Indian Textile Industry (CITI) estimates nearly $11 billion worth of exports will be affected, as US buyers have already begun halting new orders.
Firms like Creative Group warn of factory closures. Chairman Vijay Kumar Agarwal said two factories employing 6,000–7,000 workers may be shut, with exports to the US becoming unviable.
The industry, employing over 100 million people, faces rising competition from Vietnam and Bangladesh, which face only 20% tariffs.
Leaders are urging government support through measures like a ₹2,500 crore Export Promotion Mission and removal of the 11% duty on cotton, while hoping trade negotiations bring relief.
