The Federation of Indian Export Organisations (FIEO) has raised serious concerns over the high U.S. tariffs on Indian goods. According to FIEO President S.C. Ralhan, textile and apparel manufacturers in key hubs like Tirupur, Noida, and Surat have halted production due to the tariffs, which have severely worsened their cost competitiveness. This move is expected to disrupt the flow of Indian goods to the U.S., its largest export market.
Ralhan stated that about 55% of India’s U.S.-bound shipments, worth an estimated $47-48 billion, will face a 30-35% pricing disadvantage, making them uncompetitive against rivals from China, Vietnam, and other Southeast Asian countries. He added that labor-intensive sectors face a sharp erosion of competitiveness and warned of delays, order cancellations, and lost cost advantages. Ralhan has called for immediate government support, including interest subvention schemes and export credit to sustain working capital and liquidity for these businesses.