Archive · 3 Dec 2025
Rupee's Fall and US Tariffs Hurt Textile Exports
The Indian rupee has fallen to a record low against the US dollar, which usually helps exporters.
However, high US tariffs on Indian textiles are hurting exporters more than the weaker rupee helps.
The US is a big market for Indian textiles, but exports have dropped because of these tariffs.
Some exporters are even selling at a loss to keep their US customers.
The government and industry leaders are hopeful that a trade deal with the US will be signed soon, which could help the rupee strengthen and improve the situation.
Meanwhile, the government is not too worried about the falling rupee and expects it to improve next year.
They are also working to attract more foreign investment into India.
The rupee's fall to a record low offers little relief to India's $37-billion textile and apparel exports due to steep 50% US tariffs.
Exporters are facing reduced volumes and squeezed margins, with some operating at cost or incurring losses.
The US is the largest market for Indian textiles, accounting for 28% of exports, which declined 13% year-on-year in October.
A weaker rupee provides marginal gains in price competitiveness but is offset by higher costs of imported raw materials.
The industry hopes for an early resolution of the trade issue, particularly the removal of the additional 25% tariff, to retain US market share.
- Who
- Indian textile and apparel exporters, FICCI, Chief Economic Adviser V Anantha Nageswaran
- What
- Rupee depreciation and US tariffs affecting export volumes and margins, potential trade deal with the US
- When
- Ongoing, with significant impacts in October and April–October periods, expected improvement in 2025
- Where
- India, with a focus on the US market
- Why
- Steep US tariffs, currency fluctuations, and trade deal negotiations impacting competitiveness and profitability
- US Tariff
- 50%
- Rupee Low
- ₹90.21 against USD
- US Market Share
- 28%
- October Export Decline
- 13% year-on-year
- April–October Export Decline
- 3.54% year-on-year
- Apparel Export Growth
- 1.13% year-on-year
