How a 25% US Tariff Could Impact Indian Exports, Says Crisil Report

A recent Crisil report warns that a proposed 25% US tariff on Indian imports could significantly harm India’s key export sectors. The sectors most at risk include textiles and garments, which heavily rely on the US market for their revenues. According to the report, the impact of these tariffs will depend on how dependent each sector is on American buyers and their ability to diversify into alternative markets.

Crisil report US tariff impact on Indian exports

Tariff Impact on Indian Exporters

The US remains one of the largest markets for Indian textile and garment exports. Imposing a 25% tariff could erode the price competitiveness of Indian products, making it harder for them to compete with exports from countries that do not face similar tariffs. Exporters may face reduced orders and shrinking profit margins. This could ultimately affect employment and growth in India’s export-driven sectors.

How Indian Businesses Can Respond

To mitigate these challenges, Indian exporters may need to explore new markets and invest in value addition. Strengthening trade relations with other countries and improving product quality can help counterbalance the negative effects of the tariffs. However, the road ahead will require agility and strategic planning from businesses and policy makers alike.


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