India’s export-driven industries are bracing for large-scale layoffs after U.S. President Donald Trump doubled tariffs on Indian goods to 50 per cent, a move exporters say could devastate textiles, seafood, gems, jewellery, and carpet sectors.
In garment hubs like Tiruppur, known as “Dollar City” for its $16 billion garment exports, production has already slowed. Exporters estimate up to 150,000 workers may lose jobs in the region alone. “A 50 percent tariff is practically an embargo on Indian goods,” said V. Elangovan, managing director of SNQS International Group.
The seafood sector, employing nearly two million people, is among the worst hit. Over 40 per cent of India’s shrimp shipments go to the U.S. “We are already laying off because we can’t keep paying salaries with no orders,” said K. Anand Kumar, a major exporter in Andhra Pradesh.
Across the country, small traders and suppliers are reporting halted orders and fears of permanent customer losses. Exporter Anuj Gupta, whose U.S. clients account for 40 per cent of his sales, said, “The hovering uncertainty has hampered the work badly, leaving a big dent.”
The Federation of Indian Export Organisation (FIEO) has sought urgent relief measures from the government. Finance Minister Nirmala Sitharaman has assured industry leaders of support and hinted at an economic package to cushion the blow.
Meanwhile, Prime Minister Narendra Modi has vowed that India will remain self-reliant, refusing to compromise on farmers’ interests in trade talks. Analysts, however, warn that Trump’s tariff shock could undo years of India’s manufacturing growth and push global buyers toward competitors like Vietnam, Bangladesh, and China.
Moody’s Ratings has cautioned that prolonged tariffs may severely restrict India’s export growth and foreign investment prospects.