US Tariffs: A Looming Crisis for Indian MSMEs
The US has raised its tariffs on Indian goods, significantly affecting micro, small and medium enterprises (MSMEs). The increase affects sectors like textiles, diamonds, and chemicals, which are critical for India's exports to the US. The report highlights the competitive challenges India faces in these industries.
- Country:
- India
The US government's imposition of increased tariffs on Indian goods is poised to heavily affect India's micro, small, and medium enterprises (MSMEs), according to a report by CRISIL Intelligence. These enterprises contribute to approximately 45% of India's total exports.
Textiles, diamonds, and chemicals, which have a substantial export presence in the US, are likely to suffer the most. Within these sectors, MSMEs dominate with more than 70% market share, making them vulnerable to the tariff changes.
Notably, the diamonds sector, primarily operating from Surat, is anticipated to experience significant setbacks due to its heavy reliance on US markets. In contrast, the impact on steel exports remains marginal as they focus on different product segments. Textiles, particularly, face stiff competition from countries such as Bangladesh and Vietnam.
(With inputs from agencies.)
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