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CNBC's Inside India newsletter: Diwali sans sparkles for tariff-hit Indian exporters
CNBCยท 2025-10-23 07:04
Group 1 - Indian exporters are facing significant challenges due to U.S. tariffs of 50%, particularly affecting labor-intensive sectors like textiles and gems and jewelry [2][3] - The U.S. is India's largest export destination, accounting for over $45.8 billion, or more than 20% of total exports from April to September [3] - Industries that rely on the U.S. for over 30% of their export business are experiencing severe revenue losses and employment risks, with the textile industry employing 45 million people and gems and jewelry employing over 5 million [4] Group 2 - The imposition of steep tariffs has led to a nearly 10% year-on-year decline in textile exports in September, contrasting with a 5% growth in July before the tariffs were enacted [6] - India's total textile exports reached $36.5 billion, with $10.9 billion coming from shipments to the U.S. in the fiscal year ending March 2025 [7] - Companies like Parnika India are witnessing a significant drop in U.S. orders, prompting plans to reduce production due to unsold inventory and weak domestic demand [8]