IT IS INDIA'S TIME TO SHINE

Tariffs should be looked at as a boon and will truly be an instigator for Indian Brands to achieve world growth

- BY RITU MARYA

Tariffs on Indian goods by the US create opportunities for "Make in India" by shifting global supply chains, as companies seek to reduce reliance on the US market.

The 50 percent tariffs imposed by the U.S. on imports from India came into effect on August 27, sending ripples through the Indian economy and the government. These tariffs may reduce India's exports to the U.S. by 40-45 percent, with some sectors facing a volume collapse up to 70 percent.

Micro, Small, and Medium Enterprises (MSMEs) dominate most hard-hit sectors, accounting for 45 percent of total exports and 70 percent in labor-intensive industries. Their limited margins and resources make adaptation to steep tariffs difficult, resulting in risk of closure and mass layoffs. They have the U.S. as a major export destination, and many are already seeing order cancellations and depressed demand.

Tariffs, particularly those imposed on imports to the USA, have played a significant role in encouraging domestic manufacturing and offering Indian exporters an opportunity to launch Make in India brands.

SECTORS FACING HIGHEST CONSTRAINTS

Gems and Jewelry: Tariffs on gems, diamonds, and ornaments have soared to over 50 percent, impacting Surat and Mumbai and risking shutdowns in SEZs.

Seafood: Vannamei shrimp, now contend with tariffs rising from 0 percent to 60 percent. Andhra Pradesh, a major aquaculture hub, is worst affected.

Textile and Apparel: Sector faces up to 63 percent tariffs, threatening export hubs in Tirupur, Delhi NCR, Ludhiana, and Bengaluru.

Carpets and Handicrafts: Tariffs jumped to 52-59 percent, threatening the export viability for clusters in Bhadohi-Mirzapur and J&K.

Agricultural Produce: Basmati rice, spices, and tea incur 50 percent tariffs.