Banks gearing up for US tariff aftershocks

Alarm Bells

- MAHESH NAYAK

With the US imposing a steep 50% tariff on Indian exports, banks are worried about a broader contagion. While the initial blow has landed on goods, senior bankers warn that the ripple effects could be far more damaging than anticipated, especially for sectors that form the backbone of India's export economy and employment engine.

"The real concern is not just one sector such as textiles or gems. We are talking about sectors that contribute billions annually and employ millions. The vulnerability is systemic as it could have serious consequences," said a senior banker at a major private sector bank.