US tariffs slash Indian textile exports by 50%: Report
New Delhi: Following the imposition of 50% tariffs by US president Donald Trump on Indian goods, India’s textile and clothing exporters have witnessed an equivalent 50% drop in their US business, leading to mounting inventories and delayed orders, an industry-wide survey has revealed.
According to Kashmir Media Service, the Confederation of Indian Textile Industry (CITI) reported that around one-third of the respondents in the survey have said that turnover of their US business has decreased by more than 50%. For around 85% of these respondents, the reduction in orders has resulted in inventory build-up, reported Indian English language business newspaper Financial Express.
The survey also found that around two-thirds of exporters have had to offer discounts of up to 25% to remain competitive, while 82% are grappling with extended credit cycles across the supply chain due to the tariffs.
“Over half of these exporters reported that the credit period has stretched by 3 to 6 months, placing a substantial strain on liquidity,” CITI said in a statement.
Additionally, approximately 40% of respondents indicated a rise in working capital requirements by more than 30%, underscoring the growing financial burden on the sector.
The US accounts for 28% of India’s total textile and apparel exports, making it the single largest market for the industry. Last financial year, exports to the US amounted to $11 billion, highlighting the sector’s heavy reliance on the American market. KMS-13S
