After Trump notifies additional tariff, textiles units in Tirupur, Noida & Surat halt production, say exporters

“However, leveraging the negotiating window for urgent diplomatic engagement with the US still remains the key. Yet another approach could be the promotion of Brand India and innovation through enhanced global branding, investment in quality certifications, and embedding innovation in export strategy to make Indian goods more attractive globally,” FIEO said.

Ralhan said that 50 per cent US tariffs will severely disrupt the flow of Indian goods to its largest export market. He added that the development is a setback and could severely impact India’s exports to the US. “With approximately 55 per cent of India’s US-bound shipments ($47–48 billion) now exposed to pricing disadvantages of 30–35 per cent, Indian goods have been rendered uncompetitive compared to competitors from China, Vietnam, Cambodia, the Philippines, and other Southeast and South Asian countries,” Ralhan said.

Meanwhile, the Confederation of Indian Textile Industry (CITI) said that textile manufacturers are looking for immediate upfront support from the government to address the enormous challenge posed to India’s textile and apparel exporters through the 50 per cent US tariff on Indian goods, which is to come into effect from August 27.

“The government has been discussing with industry how it can come to our aid during this critical juncture. But given the gravity of the situation, it is our expectation that concrete measures in the form of fiscal support and policy decisions related to raw material availability will be taken immediately,” CITI Chairman Rakesh Mehra said.

“At stake are not just the future of India’s textile and apparel exporters and the consequent loss of foreign exchange earnings for the country, but also countless jobs in the textile and apparel sector, as well as the chances of achieving the national target of textile and apparel exports worth $100 billion by 2030,” Mehra said.

On other labour-intensive export sectors such as leather, ceramics, chemicals, handicrafts, and carpets, FIEO said that the industry faces a sharp erosion of competitiveness, particularly against European, Southeast Asian, and Mexican producers. “Delays, order cancellations, and negated cost advantages loom large over these sectors,” FIEO said.

“There is a need for immediate government support, which includes a push for interest subvention schemes and export credit support to sustain working capital and liquidity. To further support this, low-cost and easily available credit with emphasis on MSMEs — backed by banks and financial institutions under special government and Reserve Bank of India directives — is essential,” Ralhan said.

CITI has also asked the government for a moratorium on payment of principal and interest for loans for up to one year.