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Indian Textiles Hit by Trump Tariffs & Iran War
9 Apr
Summary
- U.S. tariffs made Indian exports uncompetitive last year.
- The Iran war increased raw material and packaging costs.
- Migrant workers are returning home due to fuel shortages.
India's vital textile industry, the nation's second-largest employer supporting over 45 million jobs, has been plunged into turmoil. U.S. tariffs, first implemented in August last year, significantly hampered export competitiveness. While rates were reduced in February, this relief was short-lived.
The subsequent conflict involving Iran has disrupted global supply chains, particularly through the Strait of Hormuz. This disruption has led to increased energy and freight costs. For the textile sector, this translates to higher expenses for raw materials and packaging.
Beyond economic impacts, the situation has created social challenges. Some migrant workers in the textile sector are reportedly struggling to access essential cooking fuel, leading to a migration back to their native towns.
