Latest news with #EEPCIndia
The Hindu
2 days ago
- Business
- The Hindu
Exporters to U.S. fear loss of business with 25% additional tariff
The additional 25% tariff announced by the U.S. on exports from India will result in loss of substantial business if the tariff stays, said exporters of engineering and textile products. The U.S. is the top market for several Indian products. Exporters hope the U.S. will withdraw the additional tariff and have called for efforts to continue negotiations between the two countries. While support from the government cannot be a substitute for export orders, the exporters do need financial support from the Union government to overcome the current situation as Indian exporters are in trouble, said an engineering exporter. In 2024-2025, the U.S. accounted for 27% of the $22.9 billion auto components exported from India and 7% of $22.4 billion imports of auto components into India, said Automotive Component Manufacturers Association president Shradha Suri Marwah. 'While this [additional tariff] development presents near term headwinds, for Indian exporters, it also underscores the importance of enhancing our sector's competitiveness, strengthening value addition, and exploring new and diversified markets,' he said. EEPC India chairman Pankaj Chadha said the increase in tariff threatens to derail the ongoing trade talks between the two countries. 'We are hoping for an interim deal,' he said. Engineering exports from India to the U.S. in 2024-2025 were to the tune of nearly $20 billion. Iron and steel products and aluminium, and electrical and industrial machinery are among the major exports. Sudhir Sekhri, chairman of AEPC, said the U.S. is a key market for Indian ready-made garment exports, with the country holding a share of 33% in India's total garment exports in 2024. 'While export of fashion garments will continue as it is not easy for the U.S. buyers to identify alternative suppliers immediately, export of volume products may move out of India if the additional tariff stays. With the initial 25% tariff, some of the U.S. buyers have accepted the shipments and some negotiated for discounts,' said K.M. Subramanian, president of the Tiruppur Exporters Association. Ravi Sam, chairman of the Cotton Textiles Export Promotion Council, urged the government to announce a three-year moratorium on bank loans. Pharma exempted Namit Joshi, chairman, Pharmexcil, said the U.S. decision to temporarily exempt Indian pharma exports from increased tariffs reiterates India's critical role in ensuring affordable, high-quality medicines for the American population. India supplies over 40% of generics used in the U.S. Tariffs on Indian pharma will be counterproductive as any tariff will be passed on to U.S. consumers.
Time of India
2 days ago
- Business
- Time of India
Textiles, engineering goods to seafood: Trump's 50% tariff bombshell sends shockwaves across industries
Live Events — amitabhk87 (@amitabhk87) — narendramodi (@narendramodi) The additional 25% tariff imposed by US President Donald Trump on Wednesday has further unsettled Indian exporters, who were already facing difficulties due to the earlier 25% tariffs. With total tariffs on Indian imports now reaching 50%, there is widespread disappointment and concern across various sectors, including textiles, engineering goods, and Chadha, Chairman of EEPC India , a trade and investment promotion organisation, called the Trump administration's decision very disappointing. 'It potentially threatens to derail the ongoing trade talks between the two countries. The additional duty, above the current 25%, will take effect in 21 days, suggesting that the decision leaves room for negotiations. The US is the top market for Indian engineering goods, and we hope that the ongoing trade negotiations for an interim deal will be finalised sooner than later,' he FY25, India's exports of engineering goods to the US increased by 8.7% to $19.15 billion from $17.62 billion in 2023-24. This growth highlights the robust relationship and potential for trade between the two is another sector with significant exports to the US. In 2025, India's textile and apparel shipments to the US are estimated to be $9-10 billion across all major categories, according to data from the United States International Trade Commission. The tariff will hit the sector hard, which primarily consists of MSMEs and operates on extremely low Sekhri, Chairman of the Apparel Exports Promotion Council, dubs Trump's 50% tariff a huge setback to the labour-intensive apparel export industry. 'There is no way the industry can absorb this. I am sure the government also realises that this unreasonable increase in tariff will sound the death knell for the micro and medium apparel industry, especially those who majorly sell to the US market, unless the GoI steps in with direct fiscal support to the industry,' he Kansal, Chairman, CTA Apparels, pointed out that currently competing nations enjoy borrowing rates as low as 2-4.5%, while Indian exporters face 8-12%. This steep tariff will make Indian products uncompetitive in the global market. 'Affordable trade finance must be a priority to prevent margin erosion. Further, beyond the US, exporters should aggressively target the UK, Europe, the Middle East, and emerging economies to mitigate single-market risks. This is a defining moment for the textile & apparel sector. By aligning government support with industry innovation, India can transform this short-term disruption into a long-term opportunity to become a more competitive and diversified global sourcing hub,' he G20 Sherpa Amitabh Kant, in a social media post on X, said, 'Trump has provided us a once-in-a-generation opportunity to take the next big leap on reforms. The crisis must be fully utilised.'The Indian seafood sector is also looking at uncertainty. The US is a major buyer of Indian shrimp, with annual imports exceeding $7 billion from India. The US accounts for more than 50% of India's total shrimp Kumar Gulati, Chairman at the Compound Livestock Feed Manufacturers Association (CLFMA) of India, highlights that Ecuador, a major competitor for India in seafood exports, faces only a 10-14% tariff. It is estimated that Indian exporters are already facing losses of Rs 600 crore due to order cancellations and containers stuck in transit as these tariffs take effect.'Whatever it takes, India will not compromise on the interests of its farmers, livestock keepers and fishermen,' Prime Minister Narendra Modi said on Thursday.'Margins in the industry are a slim 4-5%, making it impossible to absorb such steep tariff hikes, and exporters fear a significant long-term loss of market share, with Ecuador likely to replace India as the top shrimp supplier to the US. Even before the new tariffs, Indian seafood exporters were facing stiff price competition and falling prices thanks to increased supply from Ecuador. Shrimp prices dipped by 20-25% in the last year. The oversupply continues to depress global prices, which further erodes profits and export earnings for Indian producers,' he Kosaraju, CEO of AquaExchange Agritech Pvt. Ltd, an aquaculture marketplace platform, says that the immediate impact on the industry has been a 24-hour halt in purchases of shrimp just to understand the impact of the tariffs and to take corrective actions.'But from what we hear from the industry sources, we believe there will be a 10-15% reduction in the price of purchase from the farmers. So in the very short run, that's going to significantly impact the farmers, as it might lower the production cost for the farmer, and they might have to sell their emergency harvest for a loss too,' he says, adding that with the countervailing costs, the total tariffs will come to 58%, almost a 40% difference compared to Indonesia (18%) and Ecuador (14%).
Economic Times
2 days ago
- Business
- Economic Times
Textiles, engineering goods to seafood: Trump's 50% tariff bombshell sends shockwaves across industries
iStock With total tariffs on Indian imports now reaching 50%, there is widespread disappointment and concern across various sectors, including textiles, engineering goods, and seafood. The additional 25% tariff imposed by US President Donald Trump on Wednesday has further unsettled Indian exporters, who were already facing difficulties due to the earlier 25% tariffs. With total tariffs on Indian imports now reaching 50%, there is widespread disappointment and concern across various sectors, including textiles, engineering goods, and seafood. Pankaj Chadha, Chairman of EEPC India, a trade and investment promotion organisation, called the Trump administration's decision very disappointing. 'It potentially threatens to derail the ongoing trade talks between the two countries. The additional duty, above the current 25%, will take effect in 21 days, suggesting that the decision leaves room for negotiations. The US is the top market for Indian engineering goods, and we hope that the ongoing trade negotiations for an interim deal will be finalised sooner than later,' he said. In FY25, India's exports of engineering goods to the US increased by 8.7% to $19.15 billion from $17.62 billion in 2023-24. This growth highlights the robust relationship and potential for trade between the two is another sector with significant exports to the US. In 2025, India's textile and apparel shipments to the US are estimated to be $9-10 billion across all major categories, according to data from the United States International Trade Commission. The tariff will hit the sector hard, which primarily consists of MSMEs and operates on extremely low Sekhri, Chairman of the Apparel Exports Promotion Council, dubs Trump's 50% tariff a huge setback to the labour-intensive apparel export industry. 'There is no way the industry can absorb this. I am sure the government also realises that this unreasonable increase in tariff will sound the death knell for the micro and medium apparel industry, especially those who majorly sell to the US market, unless the GoI steps in with direct fiscal support to the industry,' he said. Mukesh Kansal, Chairman, CTA Apparels, pointed out that currently competing nations enjoy borrowing rates as low as 2-4.5%, while Indian exporters face 8-12%. This steep tariff will make Indian products uncompetitive in the global market. 'Affordable trade finance must be a priority to prevent margin erosion. Further, beyond the US, exporters should aggressively target the UK, Europe, the Middle East, and emerging economies to mitigate single-market risks. This is a defining moment for the textile & apparel sector. By aligning government support with industry innovation, India can transform this short-term disruption into a long-term opportunity to become a more competitive and diversified global sourcing hub,' he G20 Sherpa Amitabh Kant, in a social media post on X, said, 'Trump has provided us a once-in-a-generation opportunity to take the next big leap on reforms. The crisis must be fully utilised.' — amitabhk87 (@amitabhk87) The Indian seafood sector is also looking at uncertainty. The US is a major buyer of Indian shrimp, with annual imports exceeding $7 billion from India. The US accounts for more than 50% of India's total shrimp Kumar Gulati, Chairman at the Compound Livestock Feed Manufacturers Association (CLFMA) of India, highlights that Ecuador, a major competitor for India in seafood exports, faces only a 10-14% tariff. It is estimated that Indian exporters are already facing losses of Rs 600 crore due to order cancellations and containers stuck in transit as these tariffs take effect.'Whatever it takes, India will not compromise on the interests of its farmers, livestock keepers and fishermen,' Prime Minister Narendra Modi said on Thursday. — narendramodi (@narendramodi) 'Margins in the industry are a slim 4-5%, making it impossible to absorb such steep tariff hikes, and exporters fear a significant long-term loss of market share, with Ecuador likely to replace India as the top shrimp supplier to the US. Even before the new tariffs, Indian seafood exporters were facing stiff price competition and falling prices thanks to increased supply from Ecuador. Shrimp prices dipped by 20-25% in the last year. The oversupply continues to depress global prices, which further erodes profits and export earnings for Indian producers,' he Kosaraju, CEO of AquaExchange Agritech Pvt. Ltd, an aquaculture marketplace platform, says that the immediate impact on the industry has been a 24-hour halt in purchases of shrimp just to understand the impact of the tariffs and to take corrective actions.'But from what we hear from the industry sources, we believe there will be a 10-15% reduction in the price of purchase from the farmers. So in the very short run, that's going to significantly impact the farmers, as it might lower the production cost for the farmer, and they might have to sell their emergency harvest for a loss too,' he says, adding that with the countervailing costs, the total tariffs will come to 58%, almost a 40% difference compared to Indonesia (18%) and Ecuador (14%).
Time of India
6 days ago
- Business
- Time of India
Government willing to aid exports, but subsidies not on table
. NEW DELHI: Amid a clamour for succour after Trump's tariff announcement, govt has ruled out demands for subsidy, but suggested it is open to "innovative ways" to help industry beat the crisis. The message was delivered by commerce and industry minister Piyush Goyal during his meetings with some of the industry representatives in Mumbai over the weekend, sources told TOI. During the meetings, Goyal suggested that banks could review the risk assessment & rating models, especially for small exporters, so that the cost of loans comes down. He also agreed to look into proposals for reduction in testing and certification charges for MSMEs. There have been suggestions that govt bears a part of the 10% duty gap between India and competing countries. AEPC chairman Sudhir Sekhri said that some of the American buyers have suggested that they could share a part of the burden but the apparel industry is going to be hit hard, resulting in closure of manufacturing units and loss of jobs. "Buyers are telling us that they will buy from Chinese manufacturers despite a tariff disadvantage of 5 percentage points (30% US tariffs on China) as they are more cost competitive. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Pune: Unsold Furniture Liquidation 2024 (Prices May Surprise You) Unsold Furniture | Search Ads Learn More Undo by Taboola by Taboola " After factoring in exemptions available to sectors such as electronics and pharma, he suggested that the hit on Indian exporters across sectors could be to the tune of Rs 34,000 crore a year and argued that govt should consider making good some of the losses. Textiles, leather and footwear, chemicals and shrimps are seen to be among the sectors that will be hurt by the tariffs. But the house is still divided on seafood as countries such as Ecuador are seen to be lacking in scale. "The strong presence of Indian food and beverages in the US market, backed by a mature and reliable supply chain, continues to reinforce trade resilience during these uncertain times. Exporters are working closely with their global partners to honour existing commitments while adopting adaptive strategies that ensure the uninterrupted supply of high-demand products," said Mohit Singla, founder chairman of Trade Promotion Council of India. EEPC India, representing engineering exporters, has suggested the reintroduction of interest subsidy and payment of dues under the Market Access Initiative scheme. "Reciprocal tariffs will have an impact since duty on India, as compared to our competitor nations, is much higher. We expect engineering exports to drop by $4-5 billion," said EEPC India's Pankaj Chadha. Stay informed with the latest business news, updates on bank holidays and public holidays . Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
Canada News.Net
25-07-2025
- Business
- Canada News.Net
"Historic": Industry experts hail India-UK Free Trade Agreement
New Delhi [India], July 25 (ANI): The India-UK Free Trade Agreement has provided wider access to goods and services of both countries with industry leaders viewing the 'historic' deals as opening up opportunities to push more trade in the United Kingdom. Confederation of Indian Alcoholic Beverage Companies Director General Anant S Iyer said the FTA will strengthen the economic ties between the two countries across a lot of sectors. 'We believe that this FTA is pretty historic between India and the UK, because it will strengthen our economic ties between the two countries across a lot of sectors,' Iyer told ANI. India is set to benefit from the elimination or reduction of tariffs on about 99 per cent of its exports to the UK post the FTA. 'About 99 lines of business would benefit, especially very high labour intensive ones,' he said. He has also requested the government to have a minimum import price on alco-beverages, or have some mechanism whereby there is anti-dumping clauses to curb the entry of low-priced items into India. 'The second thing we are saying is to look at the country of origin. So be very clear that the rules of origin are followed so that you cannot get scotch diverted from some other country or wines coming from using loopholes,' Iyer said. British whisky producers will benefit from tariffs slashed in half, reduced immediately from 150 per cent to 75 per cent and then dropped even further to 40 per cent over the next ten years - giving the UK an advantage over international competitors in reaching the Indian market, an UK statement noted yesterday. Pankaj Chadha, Chairman, EEPC India, talking to ANI, affirmed optimism that engineering goods exports are poised to double with this FTA. 'We see that our exports will rise more than 100 percent. We are currently at 4.2 billion dollars of engineering exports. We hope that this will rise to 7.5 to 8 billion dollars in two to three years. It is a good deal, beneficial for both sides, and I'm complimenting the government for it,' Chadha added. Chadha also said that this FTA indicates other countries that India only signs win-win deals. 'We want to do it. We are ready to it. But it has to be win-win for both sides. There cannot be any one-sided deal. And we have drawn our red lines,' he noted. Archana Jahagirdar, Founder and Managing Partner of Rukam Capital said the India-UK Free Trade Agreement and the unveiling of the Vision 2035 document represent an essential calibration for entrepreneurs and investors across both economies. 'By unlocking near-zero tariffs for 99 per cent of Indian exports and significantly improving market access, these frameworks stimulate innovation, enable cross-border capital flows, and establish a conducive platform for the next-gen startups. The provisions on digital trade, skills mobility, technology, and critical minerals pave the way for VC-backed founders to build global-first companies from both countries. It will further enable the ecosystem to collaborate and co-innovate in emerging sectors, and seize new market opportunities in climate tech, AI, sustainability, and beyond,' added Archana Jahagirdar. Ajay Sahai, DG and CEO, FIEO, said, 'This is a historic is probably one of the biggest FTAs signed by India recently. This is important because it not only helps push traditional exports, which may be textile, apparel, footwear, gems and jewelry, toys, sports goods, marine products, food processing sector, but also some of the new sectors of export including organic chemicals, automobile, machinery and other engineering goods.' 'We are also seeing that India is exporting a lot services to the UK also. In fact, UK is one of the countries where services export is much more than the goods exports of India,' added Sahai. Jyoti Vij, DG, FICCI, said it's a significant way forward between the two countries. 'It's a path-breaking agreement that has been entered into by the two countries. There are going to be significant opportunities for various sectors, most particularly for the employment-intensive sectors where the market access will increase... There are very positive factors, like the Social Security Agreement, which eases the movement of people. Some of the visa restrictions have been removed. That will help in increasing business opportunities... When you have more export opportunities, you invest more in that sector. When you invest more, you employ more... That way, your market gets expanded, more export opportunities are always good for the economy's growth....,' she noted. India's average tariff on UK products will drop from 15 per cent to 3 per cent under India-UK FTA. Both nations desire to increase their trade to USD 120 billion by 2030. On May 6, Prime Minister Modi and PM Starmer had announced the successful conclusion of a mutually beneficial India-UK Free Trade Agreement (FTA). This forward-looking Agreement is aligned with India's vision of Viksit Bharat 2047 and complements the growth aspirations of both countries. The much-awaited landmark India-UK Free Trade Agreement was signed on Thursday, in the presence of Prime Ministers Narendra Modi and his British counterpart Keir Starmer, as PM Modi was on a two-day visit to the UK. (ANI)
