US tariffs: Apparel and textile sector survey shows build-up in inventory, higher discounts, and lower orders
Survey by CITI also reveals that respondents hope for relief measures from government, including loan moratorium and collateral-free lending.
- Oct 13, 2025,
- Updated Oct 13, 2025 12:45 PM IST
With the imposition of the 50% tariffs by the US on exports, a new survey on the impact on India’s textile and apparel sector revealed that the industry is facing several challenges including build-up of inventory and lower orders.
About 85% of the respondents have reported an inventory build-up due to the reduction in orders, while two-thirds of the respondents have to offer an average 25% discount to their buyers to remain competitive, the survey conducted by the Confederation of Indian Textile Industry revealed.
About a third of respondents reported that their turnover has been reduced by more than 50%. About 30% said the major factor contributing to this decline was the request for discounts from US buyers, while 25% attributed it to the cancellation or postponement of orders. Another 20% said there was a reduction in order volumes.
The US is the top export destination for India’s textile and apparel (T&A) products accounting to about 28% of India’s global exports in the segment. CITI conducted the survey in September on units with high exposure to the US.
India currently faces the highest tariff along with Brazil from the US. Competitors in the textile and apparel sector such as Bangladesh and Vietnam have a much lower tariff of 20% each.
An overwhelming 82% of respondents reported experiencing an extended credit cycle across the supply chain because of the recent impact, the survey further revealed.
Over half the respondents have also urged the government to announce a moratorium on repayment of existing loans, while 42% have called for the introduction of collateral-free loans to help address the surge in working capital requirements.
“Moreover, about one half of the respondents emphasised the need to enhance raw material competitiveness by removing import barriers such as quality control orders, import duties, and related restrictions, which they believe would help mitigate the adverse impact,” the survey found.
Since the announcement of the US tariffs, exporters across sectors have been facing a decline in orders and have been hoping for relief measures from the government. Meanwhile, talks with the US are also underway on the trade deal with expectations that it could be concluded by early 2026.
With the imposition of the 50% tariffs by the US on exports, a new survey on the impact on India’s textile and apparel sector revealed that the industry is facing several challenges including build-up of inventory and lower orders.
About 85% of the respondents have reported an inventory build-up due to the reduction in orders, while two-thirds of the respondents have to offer an average 25% discount to their buyers to remain competitive, the survey conducted by the Confederation of Indian Textile Industry revealed.
About a third of respondents reported that their turnover has been reduced by more than 50%. About 30% said the major factor contributing to this decline was the request for discounts from US buyers, while 25% attributed it to the cancellation or postponement of orders. Another 20% said there was a reduction in order volumes.
The US is the top export destination for India’s textile and apparel (T&A) products accounting to about 28% of India’s global exports in the segment. CITI conducted the survey in September on units with high exposure to the US.
India currently faces the highest tariff along with Brazil from the US. Competitors in the textile and apparel sector such as Bangladesh and Vietnam have a much lower tariff of 20% each.
An overwhelming 82% of respondents reported experiencing an extended credit cycle across the supply chain because of the recent impact, the survey further revealed.
Over half the respondents have also urged the government to announce a moratorium on repayment of existing loans, while 42% have called for the introduction of collateral-free loans to help address the surge in working capital requirements.
“Moreover, about one half of the respondents emphasised the need to enhance raw material competitiveness by removing import barriers such as quality control orders, import duties, and related restrictions, which they believe would help mitigate the adverse impact,” the survey found.
Since the announcement of the US tariffs, exporters across sectors have been facing a decline in orders and have been hoping for relief measures from the government. Meanwhile, talks with the US are also underway on the trade deal with expectations that it could be concluded by early 2026.