Impact of the 50% Additional Tariff on Indian Goods

Gokaldas Exports, a leading player in the garments business, faces significant challenges due to the recent 50% tariff imposed by the US on Indian goods. Managing director Siva Ganapathi discusses the potential impacts and strategies to mitigate these challenges.

Initially, a 20% tariff was manageable, with costs shared across the supply chain. However, a 50% tariff is seen as an embargo, threatening to halt business operations and force a pivot to other markets.

Strategies to Combat the Tariff

Exploring European markets and reducing capacity are among the strategies considered to counter the tariff's impact. The industry hopes for a rational outcome in the next few months, aiming for a reduction to 20%.

Government's Role in Supporting the Industry

Accelerating FTAs with the EU and UK, and securing a deal with the US, are critical steps. Additionally, interim incentives for exports to the US could help sustain the industry until a solution is found.