Bhiwandi, often called the “Manchester of Powerloom” for its vast textile industry, is reeling under the impact of US tariffs on Indian textiles. Once a lifeline supplying fabrics across the country and abroad, the sector is now facing shrinking export orders, rising input costs, and a severe labour shortage.
Export Orders Dry Up
Industry insiders said US clients have stopped placing orders because steep tariffs have made Indian products costlier compared to those from China and Bangladesh.
Subsidy Delays Add to Woes
Powerloom owners also complain of delays in government subsidies.
“I have not received my subsidy for the last three years. Rules exist on paper, but they are not implemented at the ground level,” said Bhawarlal Chaudhry, a second-generation powerloom owner.
Several small-scale units have already shut down after falling into debt, while states like Gujarat and Uttar Pradesh have been quicker in releasing subsidies to support their industries.
Infrastructure vs Neglect
Although the government has invested in roads and logistics hubs around Bhiwandi, loom owners say the textile sector has been neglected. Many small players have shifted operations to Gujarat, leaving only larger industries to survive.
Labour Shortage Hits Production
The industry is also grappling with a shortage of workers. Migrant labourers from Uttar Pradesh, Bihar, Odisha, and Jharkhand—once the backbone of Bhiwandi’s looms—are no longer willing to work in the sector. Younger workers prefer jobs in logistics hubs that offer better wages, weekly offs, gratuity, and transport facilities.
Workers’ Struggles
Powerloom workers say they feel disheartened by the lack of government support.
“We only work to survive, not with pride,” said one worker.
Chandrashekhar Mourya, who migrated from Uttar Pradesh two decades ago, added:
“There was no other work here except powerlooms earlier. But now the income is not enough for survival. I earn ₹15,000–18,000 per month and can’t expect anything more.”
Ripple Effect on Local Economy
The decline of the industry has also affected local businesses dependent on loom workers, including electronic shops, boutiques, kirana stores, canteens, and service providers.
“Earlier, workers earned well and sent gadgets back to their villages, which encouraged more migrants to come. Now fewer workers are arriving, and business is weakening,” said Dharmendra Gupta, an electronics shop owner.
Boutique owner Umesh Tiwari added:
“Demonetisation, GST, and now US tariffs have worsened the situation. If these problems are not solved urgently, the industry will not survive.”
From Eight Lakh to Four Lakh Looms
Once boasting eight lakh active looms, Bhiwandi now has only four to five lakh operational, many working irregularly. Cheap Chinese imports and unsold stock have forced small contractors to abandon the trade.
Tariffs Deal a Heavy Blow
The crisis deepened after former US President Donald Trump imposed a 50% tariff on Indian merchandise.
“Due to the tariff, exporters stopped taking orders. US clients found our goods too costly,” said Shradram Sejpal, president of the Bhiwandi Powerloom Association.
He added that even before tariffs, Chinese imports were cheaper, but now exports too are failing, leaving the industry “already dying.”
Political Intervention
Samajwadi Party MLA Rais Shaikh, representing Bhiwandi East, has written to Chief Minister Devendra Fadnavis, seeking urgent measures.
“Powerloom contributes 60% of India’s fabric exports. Without timely intervention, thousands of families dependent on this sector may face severe hardship,” Shaikh warned.
Powerloom’s Role in Maharashtra
Maharashtra accounts for 10.4% of India’s textile production and 10.2% of employment in the sector, producing 272 million kg of yarn annually—12% of the national output. Powerlooms, largely concentrated in Bhiwandi, remain crucial to India’s textile exports, though their future appears increasingly uncertain.
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