Labour-Intensive Sectors Face 70% Export Hit From US Tariffs: GTRI

The exports of the labour-intensive sectors in the country brace for a collapse of up to 70 percent as US tariffs set to take effect, according to a report by the Global Trade Research Initiative (GTRI).

- TBG NETWORK

The new tariff regime set to take effect from August 27 as US Custom department published draft on Tuesday. As per the GTRI report, it will impact a large portion of India's export basket, particularly in sectors generating massive employment.

The report said "Labour-Intensive Sectors Brace for 70 Percent Export Collapse." The report noted that U.S. tariffs will hit 66 percent of India's total exports worth USD 86.5 billion, amounting to USD 60.2 billion in goods, which will face duties of 50 percent or higher.

Among the most vulnerable sectors are textiles, gems and jewellery, and shrimp exports. On the other hand, around 30 percent of exports to the U.S. worth 27.6 billion will remain duty-free, largely dominated by pharmaceuticals, APIs, and electronics. Medicines alone account for 56 percent of the exempted shipments, giving some relief to the sector.