SMEs in Pune and Pimpri-Chinchwad seek govt intervention to cushion blow of Trump's tariffs on India
Industrialist Arun Firodia has called for a drastic reduction in electricity charges as well as interest rates to ensure the sustainability of engineering exports. Firodia, who is the chairman of Kinetic Group, said drastic steps like a reduction in electricity rates have to be taken to keep up the competitiveness of Indian engineering goods in the US and world market.
'Our industries should get electricity at Rs 2 per unit,' he said. At present, industrial units purchase electricity at Rs 8.32 per unit in the state, which is one of the highest in the country.
'The government must take steps to increase the purchase power of the consumer by reducing domestic taxation,' he said.
Last week, Trump announced a 25 per cent tariff on Indian imports from August 7, alongside an additional but unspecified 'penalty' for India's defence and energy imports from Russia.
Small- and medium-scale industries in Pune and Pimpri Chinchwad are mostly vendors and sub-vendors of the automotive industry in the district. In Pimpri-Chinchwad alone, more than 5,000 small and medium-scale industries employ over 3-4 lakh people in various engineering operations. SMEs are also involved in exports directly or indirectly. Precious stones, engineering goods, pharmaceutical, textiles are some of the major exports from the country to the USA.
Abhay Bhor, president of the Federation of Small Scale Industries Association in Pimpri-Chinchwad, urged both the state and Central government to take urgent steps to mitigate the effects of the tariff.
'Engineering goods, pharmaceuticals, electronics and industrial packaging units are based on the US export markets for their survival. The tariff, Bhor said, will result in loss of jobs as well as closure of the industries.
'Most industries are going through a rough patch with this tariff; it can really be a body blow to the industries,' he said. Bhor requested Chief Minister Devendra Fadnavis to immediately interfere to ensure this crisis is resolved.
'The sector requires handholding and the chief minister must take urgent steps to help the sector,' he said.
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