New Delhi, Aug. 2 -- The United States' decision to impose a 25 percent tariff and additional penalties on Indian imports has triggered alarm across India's textile and apparel industry, with exporters warning of major disruptions, including below-cost sales and potential mass layoffs in one of the country's largest employment-generating sectors.

The move puts India's USD 37-billion textile and apparel export industry at a significant disadvantage compared to regional competitors such as Bangladesh, Vietnam, and Indonesia-nations that continue to enjoy lower US import duties.

"We are on a very sticky wicket now. Exporters have their backs against the wall and may be forced to sell at a loss just to keep operations running and avoid mass...