New Delhi, Sept. 9 -- The textile industry in India urgently requires an incentive cushion as the recently imposed 50 per cent tariffs by the United States are too steep for exporters to absorb, according to a recent report by Emkay Research.

The report highlighted that such high tariff levels will lead to erosion of already low margins in the sector, which is struggling to stay competitive in global markets.

It stated, "Around 50 per cent US tariffs--too steep to absorb--will require incentive cushion."

The report noted that the additional 10 per cent baseline tariff imposed by the US on April 2, 2025, has already started impacting margins.

In the 90-day window after the fresh duty, the tariff burden was equally shared between export...