Tiruppur Exporters warn of Rs 12,000 crore loss as US raises duties on Indian goods

Tiruppur, Aug 27 (KNN) Exporters in Tiruppur, India’s largest knitwear hub, fear a severe blow from the newly imposed 50% tariffs on Indian textile exports to the United States.

The sharp increase, which doubles the existing duty, could result in the loss of nearly 1.5 lakh jobs and cause a revenue setback of about Rs 12,000 crore.

In the past few days, exporters rushed to dispatch goods worth Rs 400–500 crore ahead of the tariff deadline. Typically, the Tiruppur cluster exports Rs 1,200–1,500 crore worth of garments every month to the US, highlighting the scale of the disruption that lies ahead.

Industry leaders warn that these measures may force many units to scale back or halt production. With nearly 45% of Tiruppur’s exports dependent on the US market, the region’s economy is at risk of widespread layoffs, reduced orders, and financial strain on small and medium enterprises.

Exporters’ associations, including the Federation of Indian Export Organisations (FIEO), have urged the government to step in with immediate relief.

Suggested measures include policy support for raw material access, financial assistance, export credit, and diplomatic efforts to negotiate with the US and safeguard India’s textile exports.

The impact is not limited to Tiruppur. Textile hubs in Noida and Surat are also facing similar challenges, with units slowing down production as they struggle to remain competitive against lower-cost producers like Bangladesh and Vietnam.

Stakeholders emphasise the need for a multi-pronged response—ranging from export incentives and tax relief to market diversification strategies—to mitigate the risks and protect jobs in one of India’s most important manufacturing sectors.

(KNN Bureau)