India Textile Sector US Tariffs
Analysis based on 13 articles · First reported Jan 23, 2026 · Last updated Jan 23, 2026
The imposition of 50% US tariffs on Indian textiles is severely impacting India's textile exporters, leading to job losses and factory shutdowns. This situation creates uncertainty for investors in the Indian textile and apparel sectors and highlights the need for a trade agreement between India and the United States.
Rahul Gandhi, Leader of the Opposition in the Lok Sabha, has criticized Prime Minister Narendra Modi's government for its handling of the textile sector crisis. He highlighted that 50% US tariffs, coupled with falling prices in Europe and competition from Bangladesh and China, are severely hurting India's textile exporters, leading to job losses and factory shutdowns. Rahul Gandhi visited a garment factory in Haryana to observe the situation firsthand and called for an urgent trade deal with the United States that prioritizes Indian businesses and workers. He accused Narendra Modi of not addressing the issue or offering relief. The India — Ministry of Textiles presented a contrasting view, reporting positive export growth for the sector in December 2025.
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