CAUSE
One question. One truth.
“Why is the textile industry declining in India?”
In 2025, the U.S. imposed tariffs of 25–50% on Indian textiles, increasing their cost by 30–35% compared to competitors. This is the primary cause of the industry's decline by severely contracting U.S. orders and slowing production in key clusters.
Medium confidenceStructural
CURRENT STATE
In January 2026, textile exports fell 3.68% and apparel exports dropped 3.84% compared to the previous year. Manufacturing hubs like Tirupur, Noida, and Surat face production slowdowns, risking up to 200,000 jobs as exporters shift production to countries with better trade terms.
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