US Tariffs Cripple Indian Textile Exports: MSMEs Face Severe Crisis

• Indian textile exporters are struggling due to a steep 50% US tariff imposed by President Donald Trump, impacting the entire value chain.
• Companies are forced to cut prices, share tariff costs with buyers, and shift production to other countries like Bangladesh and Vietnam.
• RK Vij, National President of the Textile Association of India, highlights severe impact on MSMEs and key textile hubs like Tirupur and Panipat.
• Pallab Banerjee of Pearl Global notes that most Indian manufacturers are absorbing a 25% tariff hit, leading to unsustainable 15% price cuts.
• Textile exports to the US fell 5-6% in September 2025 compared to September 2024, while competitors saw growth, indicating a market shift.

Why It Matters: High US tariffs are severely damaging India's textile exports, forcing price cuts and production shifts.