Faced with 64% tariff, apparel worst hit sector

INDIA's export engine of most of the labour-intensive sector is likely to face a sharp deceleration as the US administration confirmed the imposition of a 50% tariff on a wide range of Indian goods, sparing only a handful of categories such as electronics and pharmaceuticals.

- PUSHITA DEY @New Delhi

Apparel products are the worst hit, with knitted garments facing an overall tariff of 63.9% when combined with the Most Favoured Nation (MFN) duty. A report by the Global Trade Research Initiative (GTRI) estimates 66% of India's $86.5 billion exports to the US will fall under the 50% tariff slab, translating into $60.2 billion worth of goods. Organic chemicals and carpets will attract 54% and 52.9% tariffs, respectively.