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Trump’s 50% Tariff Sows Fear Inside Indian Apparel Hub

Factories that invested in anticipation of a boom in orders are saddled with debt and unsold inventory.
A Gokaldas Exports apparel factory in India.
India’s $174 billion textile industry is among the largest sources of exports for the country. (Courtesy)
By
BoF PROFESSIONAL

When president Donald Trump first unveiled his “Liberation Day” tariffs in April, R.K. Sivasubramaniam, managing director at Raft Garments, had cause for optimism. His factory in the city of Tiruppur, India’s knitwear capital, makes millions of pairs of underwear that he sells for $1 apiece, with about half the output going to the US. Judging by the poster board Trump displayed in the Rose Garden, Indian exporters faced a tax well below that of rivals in Vietnam and Bangladesh.

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