India's Export Sectors Face Major Decline Amid New U.S. Tariffs
The Global Trade Research Initiative warns of a significant downturn in India's labor-intensive export sectors due to impending U.S. tariffs, affecting key industries such as textiles, gems, and shrimp. Proposed measures to counter this include tax reforms, targeted credit, and strengthening refund schemes to sustain competitive edge.
- Country:
- India
The Global Trade Research Initiative (GTRI) forecasts a severe 70% decline in India's labor-intensive export sectors as new U.S. tariffs come into effect. These measures threaten to impact a significant $60.2 billion of India's total exports.
Key sectors, including textiles, gems, jewelry, and shrimp, are bracing for a substantial increase in duties, with some facing tariffs as high as 60%. Meanwhile, approximately 30% of exports, like pharmaceuticals and electronics, will remain duty-free.
To counteract the impending crisis, GTRI recommends tax reforms, ease-of-business initiatives, and interest equalization schemes. There is also a push for diversifying markets and establishing 'India+1' export hubs to mitigate risks from U.S. tariffs.
(With inputs from agencies.)
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