The US has imposed a 50% tax on India’s textile and ready-made garment exports. After this decision, not only Indian exporters but also about 5 lakh jobs are at risk.
The biggest blow from US President Donald Trump’s tough trade policy is now going to be on India’s textile industry. From Wednesday, the US has imposed a 50% tax on India’s textile and ready-made garment exports. After this decision, not only Indian exporters but also about 5 lakh jobs are at risk.
India is one of the world’s largest textile exporters and the US is its biggest market. But after this decision by the Trump administration, Indian exporters are now being forced to fix new prices and offer huge discounts to sell goods to buyers. The situation is such that many exporters are considering cancelling their orders or extending their lead times.
Exporters are scared, discussions with buyers have intensified
Vijay Agarwal, chairman of the Cotton Textile Export Promotion Council, said that the entire industry is in uncertainty right now. Our biggest concern is about jobs. Half a million people, including direct and indirect jobs, are at risk. We don’t know what work will be done in the factory next. Vijay Agarwal himself is leaving for the US this week so that he can talk to buyers. Exporters hope that the Indian government will direct the banking system not to pressure exporters to repay loans and return interest.
China, Bangladesh and Vietnam added to the problems
Raja Shanmugam, former president of TEA (Tirupur Exporters Association) and managing director of Warsaw International, says that it will now be very difficult for India to survive in the US market. The US duty on countries like China, Bangladesh, Vietnam and Cambodia is much lower than India’s. He said that buyers are demanding discounts and price cuts from us, but this is almost impossible for us.
Millions of families in crisis
The Trump administration’s decision has emerged as the biggest crisis yet for India’s textile industry. Experts believe that it will not only halve the revenue growth of companies but also threaten the livelihoods of millions of families who depend on this industry.
