Impact of US Tariff on Indian Export Sectors
The recent 50% tariff imposed by the US on Indian goods has adversely affected stock prices in various sectors, including textiles, gems, and jewellery. Major companies witnessed significant stock declines, signaling concerns for Indian exports heavily reliant on the US market.
- Country:
- India
On Thursday, the imposition of a steep 50% tariff on Indian goods by the United States triggered a downturn in stock prices across various sectors, notably textiles, shrimp, leather, and gems and jewellery. The new tariffs are expected to have a far-reaching impact on these industries due to their substantial reliance on the US market.
Noteworthy declines were observed among major companies, with Kitex Garments and Apex Frozen Foods experiencing the most significant drops of 5% and 5.36% respectively. Among the hardest hit were also Pearl Global Industries, Siyaram Silk Mills, and Raymond Lifestyle, reflecting investor concerns over the profitability of these sectors in light of the tariffs.
The stocks tumbling underline a substantial risk for India's exports, which depend heavily on US demand. Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, emphasized that the tariffs affect critical sectors like textiles, gems and jewellery, and marine products, highlighting an economic strain that could impact exports worth over USD 48 billion.
(With inputs from agencies.)
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