Businesses Fear Order Cancellations Amid New US Tariffs

Businesses across India are raising concerns over potential order cancellations from American clients following the imposition of a 25% duty on Indian products. This rate surpasses those applied to competitors like Bangladesh, Pakistan, and Vietnam, adding an extra layer of uncertainty with an additional penalty.

Sectors Rally for Government Support

Representatives from textiles, steel, engineering, and agriculture sectors have urgently requested the swift implementation of an Export Promotion Mission, assistance in navigating the US market, and interest equalisation for export credit during talks with commerce and industry minister Piyush Goyal.

Impact on India's Export Economy

With the US set to implement a uniform 25% duty on all Indian goods plus a penalty starting August 7, nearly 50% of India's US exports, valued at over $85 billion, could be affected. The textile sector, in particular, warns of job losses, as America accounts for one-third of India's textile exports.

Looking Ahead

Industry leaders are calling for fiscal support to mitigate the tariff's impact, suggesting enhanced benefits under the Rebate of States and Central Taxes and Levies scheme. The situation underscores the need for a collaborative approach to safeguard India's position in the global market.