Textile, apparel exports hit by US tariffs: Industry tells Parliament panel

New Delhi: Textiles industry on Thursday told the Parliamentary Standing Committee on Commerce that it expects a further decline in their order books upto 50% in the January-March quarter of 2026. At a meeting in Coimbatore, the exporters highlighted loss of price competitiveness, supply chain disruptions, reduced order volumes, and market diversion by American buyers where they are exploring alternative suppliers from countries not subject to the additional tariff such as Vietnam, Bangladesh, and Pakistan.

The US imposed steep 50% tariffs on India on August 27.

Exporters attributed higher textile and apparel exports in November to front-loading of exports for the Christmas season, exporters absorbing tariff costs to retain buyersand safeguard market presence and theIndian rupee’s depreciation against the USdollar which made Indian exports cheaper and more attractive to foreign buyers.

The committee is chaired by Rajya Sabha MP Dola Sen.

As per a survey by the Confederation of Indian Textile Industry (CITI), around 33% of the respondents witnessed above 50% decline in turnover in July-September, 2025 compared to April-June 2025 while 25% saw such a decline in October -December compared to July-September, 2025.

“65% of respondents opined that relief measures announced so far by the government have not been enough. Further, in the absence of any clarity on the resolution of the issue, industry is expecting a further decline intheir order books upto 50% in Jan-March quarter of 2026,” CITI said.

After the imposition of additional tariff(50%), India is facing competitivedisadvantage compared to itscompetitors like Vietnam (20%),Bangladesh (20%), and Turkiye (15%)Country wise change in imports oftextile and apparel by the US in 2025 compared to 2024.

“Industry reported an increase in credit period by 3 to 6 months and a rise in working capital requirement bymore than 30%,” it added.

About 17% respondents able to diversify and 43% planning to diversify, exploring alternate markets seemsto be a low hanging fruit. However, about 70% of such respondents so far have beenable to diversify lesser than that.

Low Base Effect from Last Year also aided exports.

Exporters said that other markets can’t replace the US due to in fragmented demand and highly price sensitiveEurope and the UK while Australia and the UAE are small or niche volumes markets.

“Lost US bedding volumes cannot be offset elsewhere,” it said.

This steep level of tariff is expected to significantly disrupt India’s home textile exports in items like Bed Linen of cotton(59.4% share), table linen (72.9%), toilet and kitchen linen (50.5%) on which US is heavily dependent on India.