The textile heartland of Coimbatore and Tirupur in Tamil Nadu is reeling from the impact of new US tariffs on Indian garment exports. Thousands of workers have lost their jobs as factories shut down amid a sharp decline in orders from the American market.
Industry leaders report that the tariffs, imposed last year, have slashed export volumes by over 30 percent. Small and medium enterprises, which dominate the region, are the hardest hit. ‘We depended on the US for 40 percent of our business,’ said Ramesh Kumar, president of the Tirupur Exporters Association. ‘Now, many units are operating at 50 percent capacity or less.’
The ripple effects are devastating local economies. Migrant workers from Bihar, Uttar Pradesh, and other states, who form the backbone of the industry, are returning home jobless. Street vendors, transport services, and ancillary businesses are also suffering as disposable incomes evaporate.
Efforts to diversify markets to Europe and the Middle East have yielded limited success due to global slowdowns and rising freight costs. Government subsidies and export incentives have provided some relief, but experts warn that without tariff relief or new trade deals, the crisis could deepen.
As elections approach, political parties are promising revival packages, but industry veterans doubt quick fixes. The sector, which employs over 2 million people directly and supports millions more indirectly, faces an uncertain future unless international trade dynamics shift in India’s favor.