Indian Exporters Grapple with Surging US Tariffs: FIEO Sounds Alarm

On Tuesday, the Federation of Indian Export Organisations (FIEO) expressed deep concerns regarding the rising tariffs imposed by the US on Indian goods. The tariffs, which are set to increase to 50% as of August 27, are causing considerable unease within the country's exporting community.

Textile and apparel manufacturers in Tirupur, Noida, and Surat have been forced to halt production due to waning cost competitiveness, reported FIEO President S C Ralhan. The new tariff rate is poised to disrupt the flow of Indian exports to the US, one of India's largest markets, potentially affecting goods worth approximately USD 47-48 billion.

The increased duties will severely affect several labor-intensive export sectors like leather, shrimp, ceramics, and handicrafts, which will face sharp competition from countries in Europe and Southeast Asia. Ralhan calls for immediate governmental support, including interest subvention schemes, export credit support, and improved credit access for MSMEs. Additional measures, such as expanded PLI schemes and enhanced infrastructure, are deemed necessary to counteract the impact.