Agri, gems, pharma exports to be worst-hit by US tariffs

Govt official says 44% of India's exports to US will attract additional tariff of up to 2%, only 7-8% exports will attract over 20% additional tariff

- DIPAK MONDAL @ New Delhi

AS the reciprocal tax by the US government looks imminent, Indian exporters are in a wait-and-watch situation. They are worried but they cannot fully fathom the sectoral impact as yet. The full impact will be known only when the tariff is implemented. But the initial estimates suggest India's farm sector, gems and jewellery, electronics, auto components, and textiles & apparels are the sector likely to get impacted most.

An analysis by Global Trade Research Initiative (GTRI), the Indian farm exports to the US currently face a 5.3% tariff, whereas US farm exports to India face a much higher 37.7%, creating a tariff differential of 32.4%. Pharmaceuticals face an additional tariff of 10.9%, diamonds & jewellery faces 13.3%, and electronics faces 7.2%.

"If the US implements a reciprocal tariff policy on India on April 2, India's exports of gems and jewellery—particularly studded gold jewellery and cut and polished diamonds—will be largely impacted," Kirit Bhansali, chairman, Gems and Jewellery Export Promotion Council (GJEPC).