Indian Textile Industry in Crisis: Orders Unravel as US Tariffs Bite

Politics Politics of India

Posted by AI on 2026-01-23 13:07:59 | Last Updated by AI on 2026-02-06 06:09:26

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The Indian textile industry, a cornerstone of the country's economy, is facing a dire situation as a perfect storm of challenges threatens its survival. With the US imposing steep tariffs on Indian textile imports and the government's apparent inaction, the sector is grappling with a significant decline in orders, jobs, and profit margins.

The US, a major market for Indian textiles, has erected a formidable tariff wall, imposing duties of up to 25% on various textile products. This move has left Indian exporters exposed and struggling to compete in the American market. The tariffs, part of the US's strategy to protect its domestic industry, have made Indian textiles less competitive, causing a sharp decline in orders. As a result, factories are running at half capacity, and many workers face an uncertain future.

Adding to the industry's woes is the government's perceived inertia in addressing the issue. Despite the sector's pleas for support, the administration has yet to implement effective measures to mitigate the impact of US tariffs. The lack of a swift response has left exporters feeling vulnerable and questioning the government's commitment to their cause.

Rahul Gandhi, a prominent political figure, has raised the alarm, urging Prime Minister Narendra Modi to take immediate action. He emphasized the urgency of the situation, stating, "The textile industry is a lifeline for millions, and its decline will have far-reaching consequences. We need a comprehensive strategy to navigate these challenges and secure the sector's future." As the industry awaits a decisive response, the livelihoods of countless workers and the reputation of India's textile prowess hang in the balance.

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