"India’s Textile and Apparel Industry Faces Deepening Slump as US Tariffs Bite Harder: Survey", 29 January 2026

India’s textile and apparel (T&A) industry is bracing for a sharper downturn...and further job losses, as exporters warn that the continuing impact of US tariffs could prove more damaging than earlier disruptions, including the pandemic period, according to a survey conducted in December 2025 by the Confederation of Indian Textile Industry (CITI).

The survey...found that nearly one-quarter of respondents reported a turnover decline of more than 50% in the October–December 2025 quarter compared with the preceding quarter. More significantly, a majority of exporters expect a further contraction of up to 50% in the January–March 2026 period...

Industry representatives cautioned that prolonged revenue stress could translate into job losses...The survey highlighted limited capacity for exporters to absorb sustained external shocks, noting that diversification into alternative markets remains below 10% of impacted products.

According to the study, the imposition of an additional 25% ad valorem tariff, along with a 25% penalty duty—effectively raising the tariff burden to 50%—has severely eroded India’s competitiveness in the US...around 60% of respondents reported that export orders had been shifted to competing countries such as Bangladesh and Vietnam...

Respondents reported sharp increases in order reductions (82.6%), discount demands (73.9%), and cancellations or postponements (48%), underscoring the severity of the demand shock.

While the impact has been felt across the value chain, the burden has fallen disproportionately on MSMEs, which accounted for 59% of survey respondents...