Tariff Uncertainty पर क्या सोचते हैं Businessman? कितना होगा व्यापार पर असर | US Tariffs

India-US Textile Trade Faces Uncertainty Amid Reciprocal Tariffs, Exporters Hope for Resolution

I am currently at a major textile export unit in Noida, joined by two leading exporters, Lalit Thukral and Anurag Kapoor, who export a significant amount of goods to the United States.

Impact of Tariffs:
Since August 27, reciprocal tariffs of 50% have been imposed. Lalit Thukral explains that budget items have been hit the hardest. Out of India’s annual $5.5 billion textile business with the US, $2.5–3 billion remains unaffected, but the remaining $2.5 billion has seen a slight impact. While it’s not a very big difference yet, if the tariffs are not lifted, future business could be affected.

Shift in Business:
About 20% of basic items have already shifted to countries with lower tariffs. Orders for value-added and high-value pieces are still coming in, but they’re also going to countries where tariffs are lower.

Hope for Improvement:
Anurag Kapoor notes that recent positive statements from both the US President and the Indian Prime Minister have reduced tensions and given hope for a resolution. He compares the situation to cloudy skies over Delhi that have now started to clear, suggesting that relations between India and the US are improving.

Current Export Situation:
Despite the slowdown, factories are still producing goods for the US market. Kapoor is optimistic that India will remain one of the most progressive nations in US bilateral trade in the coming years.

Negotiations for a Trade Agreement:
There is an ongoing negotiation for a proposed bilateral trade agreement, expected to be finalized by fall. Exporters believe that once the agreement is reached, uncertainty over tariffs will decrease. Much of the work is happening at the bureaucratic level, and the positive statements from world leaders suggest that the groundwork is complete and it’s time to present the outcome to the world.

Challenges and Outlook:
Both India and the US need to resolve their issues quickly if they want to finalize the trade agreement by October. The tariffs are affecting American consumers as well, creating uncertainty on both sides. Exporters hope that positive feelings and ongoing negotiations will resolve these problems in the coming month.

Conclusion:
Reporting from Noida’s export unit, it’s clear that while the textile trade has faced challenges due to tariffs, there is cautious optimism among exporters that a resolution is on the horizon, thanks to improving diplomatic relations and ongoing trade talks.