Surat: The announcement of a 25% tariff and penalty on Indian exports by US President Donald Trump has triggered widespread concern across the country’s trade and industrial sectors. Surat, known for its textile, diamond, and pharmaceutical industries, is expected to face significant economic challenges due to this decision.
As per agency report, India’s exports to the United States reached $86.51 billion in 2024–25, marking an 11.5% increase from the previous year. With the imposition of the new tariffs, the country’s GDP growth rate is projected to decline by nearly half a percentage point.
The textile industry, particularly the man-made fiber (MMF) sector in Surat, is expected to be the hardest hit. According to the Southern Gujarat Chamber of Commerce and Industry (SGCCI), textile exports from India to the US may decline by approximately 12%, resulting in a potential loss of $1.5 billion. SGCCI President Nikhil Madrasi emphasized that the tariff would have a direct and serious impact on Surat’s trade-dependent economy.
SGCCI Vice President Ashok Jirawala highlighted that over 1.8 million people are associated with Surat’s textile sector, which includes around 35,000 weavers, 350 mills, 200 traders, and 50 texturizing units. The increased cost of Indian textiles in the US market is likely to shift demand towards competitors like Vietnam and Bangladesh. He warned that if the US imposes lower tariffs on countries such as Bangladesh, Indian textile exports would further suffer.
Former SGCCI President Vijay Mewawala noted that the tariff will severely affect India’s apparel exports, where Surat serves as the backbone for fabric supply. The hike in tariff from August 1 could lead to canceled orders, especially from American buyers who previously sourced large quantities from India. Small and medium-scale textile businesses are particularly vulnerable to this disruption, as international buyers may now look to other countries for cost-effective sourcing.
The diamond, gems, and pharmaceutical sectors are also expected to bear the brunt of the tariff. SGCCI Honorary Treasurer CA Mitesh Modi stated that Surat’s diamond industry, which employs nearly 1 million workers, will likely experience a decline in polishing and export activities. He added that India's pharmaceutical exports to the US, currently valued at $10 billion, could also face setbacks. Industrial zones such as Ankleshwar, Vapi, and Dahej, known for chemical and pharmaceutical manufacturing, will not remain unaffected.
CA Mitesh Modi suggested that India must urgently engage in trade negotiations with the US to seek relief from the new tariffs. A formal trade agreement could potentially mitigate the impact and restore balance to the affected sectors.
Currently, all eyes are on whether the United States will extend similar tariffs to other countries including China, Indonesia, Sri Lanka, and Gulf nations. Until a revised trade policy or agreement is established, the new tariffs will remain in effect.
The imposition of a 25% tariff by the US on Indian goods presents a serious economic challenge for Surat, a major industrial hub. Core sectors such as textiles, diamonds, and pharmaceuticals, which support the livelihoods of millions, are now exploring alternative strategies and awaiting decisive policy interventions. Swift diplomatic efforts are essential to ensure economic stability for both India and Surat’s industrial backbone.
