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CITI Survey Finds 50% US Tariff Squeezes India’s Textile Exporters

Firms hit by the 50% US tariff are pressing for loan moratoria to ease cash stress.

Overview

  • About 85% of surveyed companies reported inventory build-ups as orders from the US fell sharply.
  • Nearly one-third said turnover dropped by more than 50%, with many citing discount demands, cancellations or postponements, and lower order volumes.
  • Roughly two-thirds offered average price cuts of around 25% to retain US buyers, eroding margins across the sector.
  • Some 82% reported longer credit cycles, often by three to six months, and about 40% saw working capital needs rise by more than 30%.
  • Exporters urged a loan repayment moratorium and collateral-free credit, sought removal of import barriers to cut raw-material costs, and noted trade talks with the US are in progress with potential resolution projected in early 2026.