Apex Exporters Physique Fieo on Tuesday (August 26, 2025) expressed severe concern over excessive US tariffs on Indian items, saying that textile and attire producers from Tirupur, Noida and Surat have halted manufacturing amid these sudden duties that exacerbated the prices of competitors.
US duties on Indian items will improve to 50% from August twenty seventh.
The transfer considerably disrupts the circulation of Indian items to the biggest export market, mentioned Sc Ralhan, President of India’s Export Machines Affiliation (FIEO).
He described growth as a setback, saying it might have a severe impression on India’s exports to the US, with round 55% of India’s US cargo (valued from $47 million to $48 billion) presently uncovered to the bounty of pricing of 30-35%, making it much less aggressive in comparison with its opponents from China, Vietnam, Cambodia and the South East nations.
“Fieo has expressed severe concern in regards to the US authorities’s further 25% tariffs that can increase the entire duties on many export classes, which will likely be efficient from August 27, 2025.
The sector has misplaced its place as a low-cost rival from Vietnam and Bangladesh, Lalhan mentioned.
Lalhan added that labor-intensive export sectors corresponding to leather-based, shrimp, ceramics, chemical substances, crafts and carpets will face a pointy erosion of competitiveness, particularly for producers in Europe, the southeastern, Mexico and Mexico.
“In these areas, there are larger advantages to delays, cancellation of order and unfavorable prices,” he mentioned.
Wanting on the present rising situations, he urged the necessity for quick authorities help, together with selling curiosity subvation schemes to keep up working capital and liquidity and export credit score help.
At the moment, the sector wants quick access to credit score prices and credit score, particularly to MSME, with help from banks and monetary establishments. He mentioned there’s a want for a particular course from the federal government and the Reserve Financial institution of India on this regard.
Lalhan can also be looking for a moratorium on principal funds on loans as much as one 12 months and curiosity on loans.
Moreover, by increasing the PLI scheme, strengthening infrastructure and investing in chilly chain/storage property, it should strengthen competitiveness and aggressive market diversification by way of accelerated commerce agreements (FTAs) with the EU, Oman, Chile, Peru, the GCC, Africa and different Latin American nations, and designating early stage clauses.
“Nonetheless, leveraging the negotiation window for pressing diplomatic engagement with the US stays vital. One more strategy is to advertise model India and innovation by embedding enhanced international branding, funding in high quality certification, and innovation in export methods to make Indian items globally engaging.
Fieo appeals for immediate and coordinated motion between exporters, business associations and authorities businesses, protects livelihoods, strengthens international commerce hyperlinks, and navigates this disrupted stage.
“The measures taken now decide how successfully India can face up to exterior shocks and reassert its presence within the international export atmosphere,” he mentioned.
Revealed – August 27, 2025 01:04 ON IS
