Delhi( Khyber Point) India’s export sector is facing one of the toughest challenges in decades as Prime Minister Narendra Modi’s economic policies, coupled with mounting international tariffs, push industries to the edge of collapse.
According to a detailed report by Al Jazeera, the U.S. decision to impose a 50% tariff has devastated India’s carpet export industry. Bhadohi, often referred to as India’s “carpet city,” has seen its once-thriving exporters grind to a halt. For the past month, no shipments have been sent to the United States, leaving exporters in disarray.
Industry veterans, some with careers spanning more than 50 years, described this as the most difficult period they have ever faced. Many fear that if conditions do not improve soon, the carpet sector — heavily dependent on the U.S. market with little to no domestic demand — could face total collapse.
Exporters expressed frustration that negotiations with the U.S. have yielded no tangible results. “The harsh American tariffs have nearly shut down our business,” said one manufacturer. In response, many factory owners have reduced working hours, and if the crisis continues, thousands of workers could lose their jobs.
The crisis is also opening the door for competitors. Exporters warned that countries like Turkey and Pakistan, benefiting from lower tariffs, are rapidly replacing India’s share in the lucrative U.S. market.
Economic analysts say the situation has shattered the Modi government’s claims of “self-reliance.” Instead, they argue, India’s growing isolation in the global marketplace highlights the failures of its current economic strategy. With mounting losses and rising unemployment, the government faces intensifying criticism from industry leaders and trade experts alike.
