Indian textile and apparel exporters are under severe strain, with the Apparel Export Promotion Council (AEPC) reporting daily losses of ₹45 crore since the 50% U.S. tariffs took effect on August 27. These punitive measures have choked order momentum and forced exporters to absorb 15-18% of the total Free on Board (FoB) value themselves to retain customers. In Tiruppur alone, exporters have lost confirmed orders worth nearly ₹15,000 crore.
The impact has led to a 30% reduction in production capacity, preventing many migrant workers from returning to factories after the Diwali holidays. Some clients have cancelled major orders—including one for 2 million units from Raft Garments—diverting them to competitors in Bangladesh, Cambodia, and Vietnam. Industry leaders warn that if a trade deal is not reached, this sustained pressure could lead to long-term employment losses in India and higher retail prices for U.S. consumers by 2026.
Large exporters such as Welspun Living and Gokaldas Exports have flagged concerns that Indian apparel will become significantly more expensive in the U.S. market. Price increases of 4-6% are expected to be passed on to consumers as early as spring 2026, which may lead to a contraction in demand. While some companies have attempted to offset margins through selective discounts, others report a general slowdown in new U.S.-linked orders.