The Federation of Indian Export Organisations (FIEO) mentioned Tuesday that textiles and attire producers in Tirupur, Noida, and Surat have halted manufacturing amid worsening value competitiveness on account of US President Donald Trump’s determination to impose a further 25 per cent tariff on Indian exports, taking the cumulative tariffs to 50 per cent — the best globally.
“Textiles and attire producers in Tirupur, Noida, and Surat have halted manufacturing amid worsening value competitiveness. This sector is shedding floor to lower-cost rivals from Vietnam and Bangladesh. As for seafood, particularly shrimps, because the US market absorbs almost 40 per cent of Indian seafood exports, the tariff improve dangers stockpile losses, disrupted provide chains, and farmer misery,” FIEO President S C Ralhan mentioned in a press release.
“Nonetheless, leveraging the negotiating window for pressing diplomatic engagement with the US nonetheless stays the important thing. One more strategy may very well be the promotion of Model India and innovation by enhanced international branding, funding in high quality certifications, and embedding innovation in export technique to make Indian items extra engaging globally,” FIEO mentioned.
Ralhan mentioned that fifty per cent US tariffs will severely disrupt the circulation of Indian items to its largest export market. He added that the event is a setback and will severely affect India’s exports to the US. “With roughly 55 per cent of India’s US-bound shipments ($47–48 billion) now uncovered to pricing disadvantages of 30–35 per cent, Indian items have been rendered uncompetitive in comparison with rivals from China, Vietnam, Cambodia, the Philippines, and different Southeast and South Asian nations,” Ralhan mentioned.
In the meantime, the Confederation of Indian Textile Trade (CITI) mentioned that textile producers are in search of quick upfront assist from the federal government to deal with the big problem posed to India’s textile and attire exporters by the 50 per cent US tariff on Indian items, which is to return into impact from August 27.
“The federal government has been discussing with trade the way it can come to our help throughout this essential juncture. However given the gravity of the state of affairs, it’s our expectation that concrete measures within the type of fiscal assist and coverage selections associated to uncooked materials availability will likely be taken instantly,” CITI Chairman Rakesh Mehra mentioned.
“At stake usually are not simply the way forward for India’s textile and attire exporters and the ensuing lack of overseas change earnings for the nation, but in addition numerous jobs within the textile and attire sector, in addition to the probabilities of reaching the nationwide goal of textile and attire exports value $100 billion by 2030,” Mehra mentioned.
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On different labour-intensive export sectors reminiscent of leather-based, ceramics, chemical compounds, handicrafts, and carpets, FIEO mentioned that the trade faces a pointy erosion of competitiveness, notably in opposition to European, Southeast Asian, and Mexican producers. “Delays, order cancellations, and negated value benefits loom massive over these sectors,” FIEO mentioned.
“There’s a want for quick authorities assist, which features a push for curiosity subvention schemes and export credit score assist to maintain working capital and liquidity. To additional assist this, low-cost and simply out there credit score with emphasis on MSMEs — backed by banks and monetary establishments beneath particular authorities and Reserve Financial institution of India directives — is crucial,” Ralhan mentioned.
CITI has additionally requested the federal government for a moratorium on cost of principal and curiosity for loans for as much as one yr.
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