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The imposition of a 50% tariff by the United States on exports from India has significantly impacted sectors such as textiles, jewellery, shrimp, and leather.
India has faced a significant blow to its exports to the US, with America imposing a hefty 50% tariff on two-thirds of Indian exports. This substantial increase, doubling the existing 25% rate, has sent shockwaves through Indian industries. The India-US Trade Tariff Impact is particularly felt in labour-intensive sectors. India exports approximately ₹8.96 lakh crore worth of textiles and garments to the US annually. Now, these face tariffs as high as 63.9%, potentially impacting clusters in cities like Tirupur, Noida, Ludhiana, and Jaipur. Experts suggest that this reduction in India's competitiveness could benefit countries like Bangladesh and Vietnam, jeopardizing millions of jobs and weakening India's global standing.
India exports approximately ₹83,000 crore worth of jewellery to the US. The tariff increase from 2.1% to 52.1% will significantly impact millions of jobs in hubs like Surat, Mumbai, and Jaipur.
The US imports ₹19,920 crore worth of shrimp from India. The increased tariffs threaten Andhra Pradesh farms and processing units in Visakhapatnam, potentially leading to market losses to countries like Vietnam and Ecuador.
Carpets: India exports carpets worth ₹9,960 crore annually to the US. The tariff has risen from 2.9% to 52.9%, endangering the livelihoods of artisans in Bhadohi, Mirzapur, and Srinagar.
Handicrafts: Exports of handicrafts worth ₹13,280 crore are now at risk. The increased tariffs will impact factories in cities like Jodhpur and Moradabad.
Leather and Footwear: A 50% tariff is now imposed on leather and footwear worth ₹9,960 crore. This could lead to reduced production in hubs like Agra, Kanpur, and Tamil Nadu.
India exports agricultural products such as basmati rice, spices, and tea worth ₹49,800 crore to the US annually. The 50% tariff increase could allow countries like Pakistan, Vietnam, and Kenya to capture market share.
The Global Trade Research Initiative (GTRI) estimates that approximately ₹4,99,660 crore worth of Indian exports are affected by this tariff. This could lead to a 43% decrease in US exports and impact up to 70% of affected sectors.
Approximately ₹2.29 lakh crore worth of Indian exports remain tariff-free. This primarily includes pharmaceuticals, active pharmaceutical ingredients (APIs), smartphones, routers, chips, and diodes.
Government sources suggest that this US action is linked to India's purchase of oil and weapons from Russia. This could severely impact Indian exports, potentially leading to significant job losses and affecting economic growth.
In light of this tariff, India needs to reconsider its export strategy. Domestic industries must focus on technological upgrades and explore new markets to avoid jeopardizing the livelihoods of millions.