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Indian garment industry warns of mass layoffs

Jörg Jelinnek
August 6, 2025

The tariff dispute between the US and India could escalate further. President Trump has imposed a 25% tariff on Indian goods and threatened to increase it over India's purchase of Russian oil. India has stated it will continue buying Russian oil and criticized the US and Europe for also importing Russian products. Meanwhile, this ongoing row is negatively impacting businesses in India.

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Millions of jobs in India's garment and footwear sectors are at risk as US tariffs on Indian exports soar. Neighboring countries enjoy reduced duties, making India less competitive. The anticipated US-India free trade deal has stalled, and tensions have grown over India's continued oil imports from Russia. With exports to the US making up half of production for firms like Farida Group, the impact could be severe — threatening both economic stability and diplomatic ties.