A major disturbance of the Indian export to the United States with a 50 % tariff

With orders from the United States drying with a 50 % tariff imposition, exporters hope to support the government and the Indian Reserve Bank to capture the challenges of working capital and diversify the markets.

The US Department of Internal Security has informed an additional 25 % tariff for India to buy Russian oil, and the total tariff for the chosen Indian goods took to 50 % from August 27. Medicines and the application programming interface and electronics are still exempt from these definitions, but approximately 555 Indian exports are now subject to these fees.

According to exporters, this translates into a difference anywhere ranging from 30 % -35 % VIS-A-Vis, such as Vietnam, Turkey and the European Union, which the United States imposed a much less tariff.

“In most cases where the tariff is applied by 50 %, there will be no exports from India unless there is a large margin of the company that imports. Most exports will be hit from India,” said Ajay Sahai, General Manager and CEO of the Federation of Indian Export Organizations (FIIO).

In a statement, Fieo SC Ralhan President said that there is a need to support the immediate government that includes selection plans for benefits and credit support for export to maintain working capital and liquidity. “To support this, there is a need for a decrease in the cost of credit and the ease of credit availability with a focus on the guarantee of mineral medicines for information technology with the support of banks and financial institutions with special guidance in this regard from the government and the reserve bank in India,” he said.

Sahai also emphasized that bank support is needed for exporters in terms of standing on the loan and interest payments, in addition to lending free of guarantee that would help in achieving working capital challenges.

The Indian Reserve Bank may meet next week to discuss potential measures to help them in the wake of this setback.

Panakaj Chadha, President Eepc India said that about 50 % of the sector’s exports of about $ 15 billion will strike due to the definitions. “We will try about $ 7 billion in engineering exports. We will try to diversify our markets, which would help in makeup about one billion dollars. But there are still 6 billion dollars,” he said, adding that there have been no orders from the United States since the announcement of a 50 % tariff for the first time.

The Indian Textile Industry Federation (CITI) also said it hoped to obtain immediate support from the government.

“The government is discussing with the industry on how it reaches our help during this critical turn. But given the seriousness of the situation, we expect that concrete measures are taken in the form of financial support and policy resolutions related to the availability of raw materials immediately,” said Citi Rakesh Mehra, adding that Indian companies are already participating in market diversification equipment.

Vio said that textiles and clothing manufacturers in Terobur, Nuwaida and Surat have stopped production amid the ability to cost the cost to exacerbate the cost, adding that the intensive work sectors in the field of leather exports, ceramics, chemicals, liquid animals and carpets, the industry faces sharp erosion in competition, especially European production, and southern products.

India’s exports to the United States will fall sharply – from 86.5 billion dollars in the fiscal year 2025 to about $ 49.6 billion in the 2016 fiscal year – to the new tariff system in Washington, warning a report issued by GTRI. “Although 30 % of exports (27.6 billion dollars) will remain free of fees, 4 % (3.4 billion dollars, especially automatic parts) will face a 25 % tariff, and the sentence -66 % (60.2 billion dollars) cover clothes, textiles, gemstones, jewelry, shrimp, marriage, and furniture. These sectors may decrease by 70 %, where It decreased to $ 18.6 billion, causing a total of 43 % in shipments to the United States and exposing hundreds of thousands of jobs.

The government is also trying to compensate for the impact of US definitions by measures such as rationalizing the commodity and services tax rate in an attempt to enhance local demand.

It also works on a strategy to enhance exports, which includes the rapid tracking of the Free Trade Convention negotiations, expanding the focus to the top 50 imported countries and exploring new markets and new export products.