US Tariffs Invade Indian Export Markets, Sparking Economic Distress
The recent imposition of 50% tariffs by the US on Indian goods threatens to severely disrupt India's labor-intensive export sectors such as shrimp, apparel, and diamonds. This economic upheaval portends job losses and diminished competitiveness in the US market, pressing stakeholders to seek urgent government intervention.
- Country:
- India
In a significant economic jostle, the United States' 50% tariff on Indian goods is shaking the foundation of India's export economy, effective as of Wednesday. Labour-intensive sectors, including shrimp, apparel, diamonds, and footwear, are reeling from the tariffs, which threaten both exports and job creation.
The escalated trade barriers could destabilize India's position, accounting for 20% of its USD 437.42 billion goods exports in 2024-25. The Gems and Jewellery Export Promotion Council and other industry stakeholders express grave concerns, citing the industry's heavy dependence on the US market.
As companies anticipate workforce reductions, calls have grown for collaborative governmental and industry actions to mitigate the fiscal blow and safeguard global trade positions. Measures proposed include credit support lines and expansion of trade networks as immediate steps to align competitiveness under the new tariff regime.
(With inputs from agencies.)
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