US Tariffs Threaten India's Export Viability
A new 25% US tariff on Indian goods, sparked by India's Russian oil purchases, endangers the feasibility of exporting. Crisil warns of risks to sectors like diamond polishing, shrimp, home textiles, and carpets. Potential treaties and robust corporate finances may offer some relief for affected companies.
- Country:
- India
The imposition of an additional 25% tariff on Indian goods by the United States, due to India's procurement of Russian oil, threatens the viability of India's exports to the US, as reported by domestic rating agency Crisil.
Crisil's report alerts that industries such as diamond polishing, shrimp farming, home textiles, and carpeting could face financial strain. Their earnings may be significantly affected, contingent on their ability to absorb costs and their competitive standing against other nations.
Additionally, Crisil underscores the potential impact on sectors like ready-made garments, chemicals, and solar panel manufacturing, given their dependency on US trade. The scenario is further complicated by global tariff disparities and the looming possibility of a slowdown in US demand.
(With inputs from agencies.)
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