How US tariffs are unraveling India’s textile industry
Summary
The United States has imposed a 50 percent tariff on Indian textiles, affecting workers and businesses in India's textile industry. The increased tariffs have led to a drop in orders and uncertainty about future production, particularly in Ludhiana, a major textile hub in India. The tariffs were increased as a response to India's imports of Russian oil.Key Facts
- The U.S. has imposed a 50 percent tariff on Indian goods, including textiles.
- The tariffs have caused a 30 percent drop in yarn orders from Indian textile factories.
- The textile industry is important to India's economy, contributing 2.3% to GDP, 13% to industrial production, and 12% to exports.
- The industry provides direct employment to over 45 million people in India.
- India is one of the largest suppliers of textiles to the U.S., making up about 6% of U.S. apparel imports.
- The increased tariffs are a result of the U.S. responding to India's imports of Russian oil.
- Ludhiana, a large textile hub, exports around $700 million of textile goods to the U.S. yearly.
- Companies like Nahar Industries, which supply major U.S. brands, have not received new orders since the tariff increase.
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