Exporters Warn US Tariff Threaten Lakhs Of Jobs In Noida's Textile Hub

(MENAFN- KNN India) New Delhi, Sep 2 (KNN) The recent hike in US tariffs on Indian apparel imports has triggered a severe crisis for Noida's textile industry, threatening businesses and jobs.

On August 27, tariffs were raised from 12 per cent to 50 per cent, bringing exports to a near standstill.

“Even before this, we were selling at discounts just to clear stock. But now new orders have stopped,” said Lalit Thukral, President of Noida Apparel Export Cluster, reported Indian Express.

His firm, Twenty Second Miles, employs around 5,000 workers. He warned that if conditions persist,“a quarter of factories will shut within months, costing lakhs of livelihoods.”

The industry's dependence on the US is evident. Apparel exports from India are valued at USD 16 billion, with USD 5–5.5 billion going to the US.

In Noida alone, the textile sector is worth Rs 50,000 crore, with nearly 25 per cent linked to the American market. Around 10 lakh people work in the sector, many of them women.

Companies like Meenu Creations, employing 3,000 workers, fear long-term damage.“The US makes up 17 per cent of our turnover. If that vanishes, small units cannot survive,” said its Managing Director, Anil Peshawari.

Exporters report cancelled orders, piling unsold stock, and growing layoffs. Factories also face the risk of losing global buyers permanently, as orders shift to Bangladesh, Vietnam, China, and Sri Lanka.“Once supply chains move, they rarely return,” Thukral cautioned.

The crisis has also sparked unhealthy competition within India, with firms undercutting each other at heavy losses to retain clients. Exploring alternative markets is proving difficult, given the sector's deep familiarity with US fashion demands.

Industry leaders are urging government intervention through interest subvention and tax-free loans to survive the next few months.

Without support, Noida's ambition to be India's apparel capital may suffer a major setback.

(KNN Bureau)

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