Ludhiana textile units on the edge as US buyers develop cold feet

AT SHINGORA TEXTILES, a cloth manufacturing unit in an industrial cluster on the outskirts of Ludhiana, a group of workers are at work.

- MANU KAUSHIK

AT SHINGORA TEXTILES, a cloth manufacturing unit in an industrial cluster on the outskirts of Ludhiana, a group of workers are at work. They are handling a large weaving machine that churns out "performance fabrics." These are materials that go into making clothing items that are resistant to gases, water, and chemicals. There are rows of such machines spread over the massive 200,000 square feet factory area.

One of the supervisors told FE that workers are unaware of the problems that their employer is facing at the moment.

Ever since the US has announced doubling of the additional tariff on India to 50% from 25%, Shingora's US customers have put their shipments on hold, and asked the company to wait until there's clarity on the tariff rate. Going by Washington's current plan, the 50% tariff, which includes a punitive levy of 25% for importing oil from Russia, will take effect from August 27.

The Indian industry is pinning hopes on the attempts being made to resolve the Russia-Ukraine conflict. On its part, the government has made it clear that as long as Russian oil helps cut the country's huge energy import bill, imports from Russia can't stop.

Nearly 30% of the textile units in Ludhiana have exposure to the US market. Like Shingora, many other companies have been asked to put shipments on hold.