Export firms eye overseas ops as cushion against US tariffs

To offset high US tariffs, Indian gems & jewellery, specialty chemicals, and textiles firms are eyeing overseas opportunities, including manufacturing, repackaging, bottling, or joint ventures.

- Priyamvada C & Mansi Verma

High tariffs on Indian products announced last month are likely to put pressure on the margins of companies in these sectors and squeeze revenues. Investment bankers, corporate consultants and lawyers told Mint firm with huge numbers of customers in the US were most likely to speed up their expansion plans there.

Sample this: Raft Garments, a manufacturer of knitwear products in circular knits for men, women and children in Tirupur, Tamil Nadu, exports about 50% of its goods to the US, followed by Europe and the Middle East. It also has a domestic presence. Before the latest tariffs came into effect on 27 August, the company had about half a million pieces, worth ₹5 crore, that were ready to ship but this was put on hold because of uncertainties around the tariffs.