💥Tariff Tsunami Hits Indian Garments! MSMEs in 🔥 Trouble as Growth Slumps in FY26 📉
- MediaFx
- 6 hours ago
- 3 min read
TL;DR:
India’s readymade garment industry is in deep trouble 😬 as a new 50% import tax by the U.S. kicks in 🧾 starting August 27, 2025! 😱 This could chop the sector's growth in half, dropping it from 7–9% to just 3–5% 📉 in FY26. MSMEs are crying foul 💔 as exports are hit hard, especially those who depend on the U.S. 🇺🇸. While local demand is still okay, many exporters may shut shop unless sarkar steps in with help 💰.
Brooo 😵, India’s readymade garments biz is facing its worst fashion crisis ever! 👗👖 Crisil just dropped a bomb report that says growth is gonna fall flat in FY26—only 3 to 5% 💔 compared to 7–9% in FY25 😩. And the villain? None other than a nasty 50% import tariff slapped by the U.S. on Indian clothes 🇮🇳➡️🇺🇸.
This includes a 25% existing duty + a scary new 25% penalty tax 💸. Basically, for every ₹100 worth of clothes we send there, we’re now getting back only ₹50–60 🥲. That’s just bad math for our desi kapda walas!
🔍 MSMEs 😰 ka bura haal!
#MSMEs and small-scale exporters are crying blood yaar 😢! These guys rely heavily on U.S. orders—some even get 40%+ of their revenue from there 😨. Now with this #USTariffAttack, margins are gone, profits are gone, and #jobs are at serious risk 😵.Apparel Export Promotion Council (AEPC) even warned that this might turn into a survival challenge for lakhs of workers 😓!
📊 Some Hard-Hitting Stats:
📉 India's RMG export growth may HALVE to just 3–5% in FY26
💸 Export earnings expected to fall from ₹1.4 lakh crore to ₹1.2 lakh crore
🔥 Share of exports to U.S. may dip from 33% to 20–25%
😩 MSME margins to shrink by 300–500 basis points!
💔 Interest coverage ratio & leverage ratios heading downhill fast
😯 Kaise handle karega industry?
The only thing not collapsing RN is the #domesticmarket, which still might grow at 8–10% 💪 thanks to better tax policies, soft loans, and local demand 📈. But honestly, that’s not enough to make up for the big export dhandha loss.
So now, experts are saying:“Forget U.S., bhai! Go find love in Europe, UAE and UK. Desh badlo, market badlo! 🌍”
💭 What’s next for India’s garment workers?
This industry employs millions of poor workers 👷♀️—especially women—in clusters like Tirupur, Noida, Surat, and Ludhiana. With this new #TrumpTariff, many units could shut down 😰. Livelihoods are on the line, especially for daily wage earners and factory helpers.
India’s price advantage is also gone 💔. A shirt that cost $10 from India will now cost $16.40 in the U.S., while the same from Bangladesh or Vietnam stays under $13. That’s a straight #LoseLose for us.
🚨 Time for Sarkar to Act!
From the #people’s angle, this is NOT the time to sit quiet. The Centre must wake up 😤 and do something for the working class:
🤝 Emergency credit for exporters
💰 Subsidies for affected units
📦 Faster clearance for shipments to alternate countries
🧑🏫 Skilling programs to help workers shift industries if needed
If nothing is done, lakhs of low-income families will be hit hard 💔, and once again, the rich-import-export bhadralok will survive, while the poor tailor suffers 🧵.
🧠 MediaFx POV:
This isn’t just about numbers or fashion—it’s about people’s lives 👨👩👧👦. When policy decisions abroad shake up working class jobs here, our own netas need to step in 🙌. Let’s not make it a game of only corporate losses. It's about daily meals, school fees, rent, and dignity 💪.
Let the Centre help small exporters, not just Ambani types! It's time we built an India that stitches together growth for all, not just profits for a few ✊.
