3 minutes of readingBombayUpdated: February 4, 2026 11:10 pm IST
Even as the United States agreed to reduce tariffs on Indian goods from 50 percent to 18 percent, reactions from the Bhiwandi textile market have been cautious, with powerloom owners saying the cut still leaves tariffs well above previous levels and the impact on their businesses remains uncertain.
Bhiwandi was a thriving power loom hub with a National Institute for Micro, Small and Medium Enterprises (NI-MSME) report stating that there were as many as 12 lakh power looms in Bhiwandi alone and the turnover of its industry was estimated at Rs 10,000 crore annually.
Transitioning from traditional handlooms, Bhiwandi power looms spin to produce raw material, known as gray cloth in local parlance, which is then sent to traders and centers for finished textile products.
However, in the recent past, the total number of power looms in Bhiwandi has come down to less than 4 lakh due to blows dealt to the unorganized industry by demonetisation, followed by immediate implementation of GST and high power tariffs.
The sharp hike in tariffs imposed by the United States in August 2025, which raised tariffs on several Indian products beyond 50 per cent, had raised fears of a severe blow to the traditional Bhiwandi industry as textiles constitute the largest proportion of Indian exports to the United States.
While Monday’s announcement of a reduction to 18 per cent has brought relief to some quarters, loom owners in Bhiwandi said the outlook remains unclear.
“For us, the picture is still quite confusing as we still do not know the tariff band applicable to textiles. It is too early to judge how it will affect us,” said Akram Ayub Ansari, a powerloom owner whose family has been in the trade since 1942.
Story continues below this ad.
“While the overall tariff has been reduced to 18 percent, it is significantly higher than the 3 to 4 percent tariffs previously imposed on raw material exports to the United States,” he added.
Another powerloom owner said the reduction had not altered the basic disadvantage faced by the sector. “Indian textiles and other products were earlier facing 3 per cent tariffs in the US, which shot up to 50 per cent last year. Now, the tariff may be reduced to 18 per cent, but our position remains the same, if not worse, as our tariffs have increased almost seven times what they used to be.”
Some traders, however, said Bhiwandi’s focus largely on the domestic market had insulated it from the previous surge and could soften the effect of the latest change.
Saleem Ansari, owner of second generation power looms, said, “In Bhiwandi, we largely manufacture raw garments and trade in local markets. Since we do not manufacture export quality garments, our units did not face as much impact after the sharp increase in US tariffs last year as did the large manufacturing units exporting to the US. Similarly, the impact of tariff reduction may not directly affect Bhiwandi, but it can certainly give a boost to the textile business in general”.
Story continues below this ad.
For now, traders said they were waiting for clarity on how textile products would be classified under the revised tariff structure, even as uncertainty over Bhiwandi’s power continues.
