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Indian exporters are staring at major disruptions after the United States imposed steep tariffs of up to 50% on a wide range of Indian goods, a move seen as retaliation for India’s continued oil trade with Russia. The sweeping tariff hikes, which take effect today, are expected to impact over half of India’s exports to its largest trading partner.
According to early estimates from the Global Trade Research Initiative (GTRI), Indian exports to the US could decline by 40–50% in the coming months due to the sharp escalation in costs, prompting buyers to pause or cancel orders.
Widespread Impact Across Sectors
Industries hit hardest include textiles, apparel, jewellery, chemicals, leather, seafood, and machinery. Effective tariffs have surged to levels such as 63.9% on knitted garments, 60.3% on woven apparel, 54% on organic chemicals, and over 52% on diamonds, carpets, and furniture.
Colin Shah, MD of Kama Jewelry, said that more than 55% of India’s US-bound exports are affected. “Buyers are reassessing sourcing strategies. Several orders are already on hold,” he added.
Seafood Sector Struggles
Shrimp exporters, already grappling with global competition, are severely impacted. Yogesh Gupta, MD of Megaa Moda, noted that Indian shrimp now faces a total duty burden of 33.26%, compared to Ecuador’s 15%. “We risk losing significant market share,” he warned.
Textile Industry Under Pressure
The Confederation of Indian Textile Industry (CITI) called the tariffs a severe blow to a sector already battling weak demand and rising input costs. The US remains a top destination for Indian garments and home textiles.
Diversification and Diplomacy
Exporters are now being urged to explore alternative markets in Europe, Southeast Asia, the Middle East, and Africa. Meanwhile, India and the US are negotiating a limited trade agreement, with hopes of concluding initial talks by November. However, India has ruled out concessions in sensitive areas like agriculture and genetically modified products.
The second phase of tariff hikes is scheduled for August 27, compounding concerns of a tough year ahead for Indian exporters.
(Source: PTI)
