The India export slowdown is putting pressure on apparel factories in Noida and diamond manufacturers in Surat as US orders weaken and uncertainty over tariffs disrupts business planning. Industry representatives reported factory closures, job losses and longer holiday shutdowns on October 28, 2026.

Key Takeaways

  • Noida’s apparel unit count fell to 1,800 from 2,400 over six months, an industry representative said.
  • Surat diamond manufacturers extended their Diwali shutdowns to 25 days from 15 days a year earlier.
  • A Noida exporter group expects apparel exports to fall in the current financial year.

India export slowdown reaches Noida factories

Lalit Thakrul, president of the Noida Apparel Exporter Cluster, said employment in the sector had fallen to about 800,000 workers from around one million. He expects Noida apparel exports to decline to about ₹42,000 crore in the current financial year from ₹48,000 crore in 2025–26.

Thakrul said closed units were unlikely to reopen unless an India-US bilateral trade agreement was in place. That is his assessment of the outlook, rather than a confirmed reopening timetable.

Delayed orders complicate production

Kapil Sadh, a partner at Noida-based apparel exporter SK Overseas, said uncertainty was disrupting order negotiations, production planning and working capital. Seasonal manufacturing schedules leave suppliers with narrow windows to buy fabric, arrange labour and ship goods.

Delayed orders or buyer requests for lower prices can leave manufacturers carrying costs while revenue remains uncertain. Sadh also warned that exporters risk losing buyers to competing manufacturing hubs.

Surat diamond shutdowns lengthen

Diamond manufacturers in Surat extended their Diwali shutdowns as US demand weakened and orders from China remained subdued. Bhavesh Tank, vice president of the Diamond Workers Union in Gujarat, said 300 small units had also closed over the previous six months.

For broader trade context, India’s commerce ministry maintains monthly trade statistics by commodity and country. The database does not establish the local factory closure or employment figures reported by industry representatives.

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