US tariffs at 50% will impact India’s trade and some sectors like gems and jewellery, chemicals, home decor are set to suffer losses, government sources told NDTV Profit. The impact is expected to be for the short term as the supply chains will recalibrate.
Sources also said that the new date for negotiations is not fixed yet and the next formal round of negotiations on the tariff rate between the two countries is scheduled to happen soon. The liquidity-related demands will be met through Export Promotion Mission (EPM).
“The industry of the opinion that deal should happen in best interest of the country,” sources told NDTV Profit. The industry anticipates liquidity crunch and order books could slow down with the tariff hike. The government is looking at the restoration of old schemes and the growing e-commerce exports
Sources added that amid the tariff rate of 50%, there is a need to create resilient supply chains and that it will take at least 5-6 months. The government is working to expedite rollout of EPM. The Center is ”seeing situation as opportunity, wake up call for industry to diversify export basket.”
