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US Tariffs: 50% Duty on Indian Exports Effective from Tomorrow — How Can India Tackle the Impact?

 


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US Tariffs: 50% Duty on Indian Exports Effective from Tomorrow — How Can India Tackle the Impact?

Tariff War: US Imposes Additional 25% Tariff on India

The United States has issued a notification imposing an additional 25% tariff on India. Starting tomorrow, India will face a total tariff of 50%. Explaining the impact, CNBC Awaaz’s Yatin Mota said that the additional 25% tariff will take effect from 9:31 AM IST tomorrow, raising the total tariff to 50%.

Impact of 50% Tariff on India

  • The 50% tariff will affect 66% of India’s exports worth $86.5 billion.

  • From tomorrow, goods worth $60.2 billion will face a 50% duty.

  • The worst-hit sectors will be textiles, gems, and shrimp exports.

Shrimp Exports:

  • India exports $2.4 billion worth of shrimp, with the US accounting for 32% of this.

  • With the tariff, the total duty will rise to 60%.

Textiles & Apparel:

  • India’s total textiles & apparel exports stand at $10.8 billion, with the US accounting for 35%.

  • The effective tariff will be 63.9%.

Organic Chemicals:

  • India exports $2.7 billion worth of organic chemicals, which will now face 50% duty.

Machinery & Vehicles:

  • India exports $6.7 billion worth of machinery & vehicles.

  • This includes $2.6 billion worth of EVs and tractors.

Overall, due to tariffs, India’s exports in FY2026 may fall from $86.5 billion to $49.6 billion. If no corrective steps are taken, exports could decline by 43%.

Sectors Safe from Tariff Impact

Some sectors are expected to remain unaffected, including:

  • Pharmaceuticals & APIs

  • Electronics

  • Automobiles & Auto parts

  • Select copper products

Measures to Counter Tariff Impact

Experts suggest several ways to mitigate the shock:

  • Tax reforms and improving the ease of doing business

  • Providing cheap credit to shrimp, apparel, jewelry, and carpet businesses

  • Support through schemes like RoDTEP and ROSCTL

  • Government assistance for market expansion

  • Developing India+1 export hubs in other countries

  • Duty cuts on raw materials to reduce costs


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