Ludhiana, India – Amidst the humming machinery of a Ludhiana spinning mill, 29-year-old Pankaj Kumar diligently focuses on his task of threading loose yarn onto spinning wheels. With nearly a decade of experience in various spinneries, Kumar has been at this mill for the past four months, earning 18,000 rupees (3.87) monthly. However, uncertainty looms over his income as recent US tariffs on Indian goods have raised concerns about job stability and future production levels.
A report by USA Zine indicates a significant shift in orders following the implementation of a 50 percent tariff by the US government under President Donald Trump, which is said to be a reaction to India’s imports of Russian oil. Rajesh Kumar, the manager of the spinning unit, noted a rapid decline in yarn orders, plummeting nearly 30 percent within just two weeks of the tariff announcement. This legislative change poses a challenge for India’s vibrant textile sector, which contributes approximately 2.3 percent to the national GDP and employs more than 45 million people, predominantly women.
Ludhiana, known as one of India’s most vital textile hubs, exports approximately 0 million worth of hosiery and knitwear annually to the United States. The region’s reliance on the US market makes it particularly vulnerable to the recent tariff changes. In 2024, India accounted for about 6 percent of US apparel imports, a substantial portion of its overall textile exports.
Ashwin Aggarwal, head of garment exports at Nahar Industries, expressed concerns regarding halted orders and intense pressure from larger brands to absorb some of the tariff costs. The imposition of these tariffs could trigger a reevaluation of supply chains, as some businesses contemplate rerouting their exports through nearby countries that enjoy lower tariffs.
In the wake of such developments, Tamil Nadu’s textile sector—a key player in India’s knitwear exports—has also faced abrupt order cancellations. The potential repercussions could disproportionately affect home-based workers, many of whom are women earning less than a dollar a day. Local leaders, including Tamil Nadu Chief Minister MK Stalin, have urged the central government for prompt intervention to safeguard this essential segment of the economy.
As industry experts continue to forecast a challenging landscape due to the tariff implications, the workforce remains optimistic about potential government support and the resilience of India’s textile industry. Without strategic measures, however, the risk of significant job losses across the nation’s textile hubs remains a pressing concern.
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