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CITI Survey Details 50% US Tariff Fallout for India’s Textile Exporters

A CITI survey highlights inventory pileups alongside cash‑flow strain, prompting calls for loan relief.

Overview

  • About 36% of surveyed firms reported a drop of more than 50% in US turnover, with 85% facing inventory build‑ups and roughly two‑thirds offering average discounts near 25%.
  • Liquidity has tightened sharply, as 82% reported longer credit cycles—often extended by three to six months—and around 40% saw working‑capital needs jump by over 30%.
  • Micro, small and medium enterprises made up 69% of respondents, underscoring the heightened exposure of smaller exporters to the tariff shock.
  • Exporters are urging a loan‑repayment moratorium, collateral‑free credit, higher RoDTEP and RoSCTL rates, interest subvention, and the removal of import barriers such as QCOs and duties.
  • Companies are courting European buyers and discounting to retain US clients, while India’s 28% export dependence on the US and lower US tariffs for Bangladesh and Vietnam deepen competitive pressure.