India’s labor-intensive manufacturing sectors—textiles, apparel, gems, and jewelry—are facing a crisis after the U.S. imposed steep tariffs of up to 50% on Indian imports. This sudden tariff escalation has disrupted global demand and pressured industries that operate on razor-thin margins.
Export hubs across Tamil Nadu, Gujarat, and northern India are reporting production slowdowns and job losses as global buyers hesitate and orders are delayed. Small and medium-sized exporters, which directly employ thousands, are the most vulnerable.
In response, the Indian government is planning targeted relief efforts. Proposed measures include credit guarantees for delayed loans, aiming to stabilize struggling exporters and prevent further economic fallout.
The situation has also triggered a strategic shift—India is actively diversifying its export destinations beyond the U.S., prioritizing markets such as Europe, Africa, Southeast Asia, and Latin America to reduce dependency and recover lost ground.
