Trump's tariff war leads to unease in Ludhiana
Badish Jindal, president of the World MSME Forum, has termed the move a "big risk" for India's economy and warned that the impact could cost the country over Rs 1 lakh crore in cancelled export orders.
Jindal said the decision, if not reversed or addressed diplomatically, will disproportionately affect key sectors in India and give a competitive edge to rival exporters such as China and Bangladesh. "The US is one of our important trading partners, with nearly 18% of India's exports, valued at Rs 7.5 lakh crore going to America," he said.
"Meanwhile, India imports goods worth Rs 3.62 lakh crore from the US, giving us a trade surplus of Rs 3.88 lakh crore.
This balance is now at risk."
He highlighted that the impact would be serious in Punjab as well, which exports goods worth over Rs 30,000 crore to the US annually.
Industry voices across Punjab echoed similar concerns. Amit Jain, chairman of the Confederation of Indian Industry (CII), Punjab, stated that the tariffs appear to be a tactical move by US president Donald Trump to pressure India into opening up its protected sectors, including agriculture.
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"While this may be a negotiation strategy, the Indian govt must tread carefully. Any premature concessions could hurt domestic producers," he cautioned.
SC Ralhan, president of the Federation of Indian Export Organisations (FIEO), noted that the tariffs are still under discussion and have not yet been finalised.
"It's at the negotiation stage and not yet final. But if these tariffs are enforced long term, critical sectors like textiles will be impacted significantly," he said.
BOX
WHY IS INDUSTRY RATTLED
WORST-CASE SCENARIOS
Industrialists of the city fear that if the decision is not reversed or addressed diplomatically, it will disproportionately affect key sectors in India and give a competitive edge to rival exporters such as China and Bangladesh. The impact would be serious in Punjab as well, which exports goods worth over Rs 30,000 crore to the US annually
They said compounding the issue is the rise in the dollar rate, which has climbed to Rs 87.63. India, being a net importer, settles most of its payments in US dollars. This currency spike will stoke inflation, which in turn will hit the common man
THEIR PLEA TO CENTRE
They have urged the Indian govt to re-examine its protectionist policies in certain sectors, especially automobiles
QUOTES
Garments from Punjab alone account for Rs 8,000 crore of exports. Fasteners make up Rs 2,000 crore, electrical machine tools Rs 5,000 crore, auto parts and hand tools Rs 4,000 crore, leather products Rs 500 crore, sports goods Rs 300 crore, and agricultural implements Rs 200 crore. All these sectors will be hit directly
Badish Jindal, president of the World MSME Forum
The tariffs appear to be a tactical move by US president Donald Trump to pressure India into opening up its protected sectors, including agriculture. While this may be a negotiation strategy, the Indian govt must tread carefully. Any premature concessions could hurt domestic producers
Amit Jain, chairman of the Confederation of Indian Industry (CII), Punjab
The tariffs are still under discussion and have not yet been finalised. But if these tariffs are enforced long term, critical sectors like textiles will be impacted significantly
SC Ralhan, president of the Federation of Indian Export Organisations (FIEO)
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