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U.S. 50% tariff on Indian textiles causes major sales drop, inventory pileup, and financial distress.
India's textile exporters face severe financial strain after the U.S. imposed a 50% tariff on their goods—the highest among major exporters—leading to sharp declines in sales, inventory buildup, and liquidity pressures.
A CITI survey found nearly one-third of firms saw turnover drop over 50%, with 85% reporting excess inventory and two-thirds offering 25% discounts to retain U.S. buyers.
Over 80% face longer credit cycles, and many are urging the government for loan moratoriums, collateral-free loans, and reforms to ease raw material import barriers.
The sector, which exports 28% of its textiles to the U.S., is calling for urgent financial relief, faster trade deals, and policy support to restore competitiveness.
El arancel del 50% de los Estados Unidos sobre los textiles indios causa una importante caída en las ventas, una acumulación de inventario y una angustia financiera.