US Tariff Hike to Hit Indian Exports Hard: Gokaldas Exports MD

Gokaldas Exports MD Siva Ganapathi calls the US's 50% tariff on Indian goods an "embargo" and warns it will lead to business losses. The company, one of India's largest garment makers, exports $5 billion worth of garments to the US annually. Ganapathi suggests the government should fast-track free trade agreements with the EU and UK, secure a pact with the US, and provide incentives for US exports to offset costs.

The US's recent imposition of a 50% tariff on Indian garments has sent shockwaves through the Indian garment industry, with major exporters like Gokaldas Exports warning of significant business losses. The tariffs, which came into effect in two stages (25% on August 7 and the remaining 25% on August 27), have been described as an "embargo" by Siva Ganapathi, Managing Director of Gokaldas Exports, one of India's largest garment exporters to the US [1].

Gokaldas Exports, which exports $5 billion worth of garments to the US annually, has been adversely affected by the tariffs. The company has warned that the increased cost of goods will lead to a decrease in sales and potential job losses. The managing director has suggested that the Indian government should fast-track free trade agreements with the EU and UK, secure a pact with the US, and provide incentives for US exports to offset the costs [1].

The Indian garment industry is heavily reliant on the US market, with the US being the largest export destination for Indian garments. The tariffs have prompted manufacturers to explore alternative markets and production locations. Pearl Global, which supplies major US brands including Gap and Kohl's, has seen an influx of urgent calls from clients asking to shift production to countries with lower tariffs [1].

The tariffs, which partly target India for its continued purchase of Russian oil, mark a sharp reversal from earlier expectations that India would benefit from shifting US supply chains. Indian exporters are now worried that the tariffs could derail the country's ambition to become a major global manufacturing hub under Prime Minister Narendra Modi's "Make in India" initiative [1].

Despite the challenges posed by the tariffs, the Indian government remains optimistic about the country's economic prospects. Commerce and Industry Minister Piyush Goyal has expressed confidence that India's exports will surpass last year's figures and that the country is actively negotiating trade agreements with several nations, including the US, Oman, and the EU [2]. The minister has also emphasized that the Indian economy is growing faster and that the country is contributing significantly to global expansion.

In conclusion, the US tariffs on Indian garments have had a significant impact on the Indian garment industry, with major exporters warning of business losses. However, the Indian government remains optimistic about the country's economic prospects and is actively exploring trade agreements with various nations to mitigate the effects of the tariffs.

References:
[1] https://trt.global/world/article/cadff5493855
[2] https://m.economictimes.com/news/economy/foreign-trade/india-is-negotiating-a-trade-agreement-with-us-minister-piyush-goyal/articleshow/123191524.cms