Weighed Down by 50% US Levy, Indian Exporters Recalibrate

Harsh Kumar, Shine Jacob, Ajinkya Jayant Kawale & Ishita Ayan Dutt New Delhi/Chennai/Mumbai/Kolkata, 27 August

- Harsh Kumar, Shine Jacob, Ajinkya Jayant Kawale & Ishita Ayan Dutt New Delhi/Chennai/Mumbai/Kolkata, 27 August

The 50 per cent tariff on Indian exports to the US has exporters on edge. From scaling back production to fears of job losses, the ripple effects are spreading across industries. Yet, businesses are also recalibrating: testing new markets, tapping into domestic demand, and pushing the government for relief.

MSMEs: Looking for a lifeline
The micro, small and medium enterprises (MSME) sector is monitoring the tariff impact and may approach the government with suggestions next week, said Anil Bhardwaj, secretary general of the Federation of Indian MSMEs.

"For now, we are observing the immediate fallout, though we're prepared for different scenarios. By next week, we'll seek government support, particularly funds for research on markets beyond the US," Bhardwaj told Business Standard.

The short-term hit will be severe for MSME-dominated sectors such as textile, leather, handicraft, and jewellery. "In apparel and leather, we're competing head-on with Vietnam and Bangladesh, both at 20 per cent duty," he said.

Vinod Kumar, president of the India SME Forum, said outreach to about 100,000 members has drawn 1,035 responses, with entrepreneurs already mapping ways to cope with the tariffs.

Central to industry demands is a proposed ₹25,000 crore financial support mechanism under the Export Promotion Mission (2025-2031), said Hemant Jain, president, PHD Chamber of Commerce and Industry.

Textiles: Reweaving export map