The brand new tariff regime set to take impact from August 27 as US Customized division revealed draft on Tuesday.
As per the GTRI report it should affect a big portion of India's export basket, significantly in sectors producing huge employment.
The report stated “Labour-Intensive Sectors Brace for 70 per cent Export Collapse”
The report famous that U.S. tariffs will hit 66 per cent of India's whole exports value USD 86.5 billion, amounting to USD 60.2 billion in items, which can face duties of fifty per cent or greater.
Among the many most weak sectors are textiles, gems and jewelry, and shrimp exports. However, round 30 per cent of exports to the U.S. value per cent 27.6 billion will stay duty-free, largely dominated by prescription drugs, APIs, and electronics. Medicines alone account for 56 per cent of the exempted shipments, giving some reduction to the sector.Labour-intensive industries, nevertheless, are anticipated to take the sharpest hit. As per knowledge, shrimp exports value USD 2.4 billion, which represent 32 per cent of India's share within the U.S. market, will now face a complete tariff of 60 per cent, placing aquaculture hubs in Visakhapatnam at extreme danger.
The diamond and jewelry sector, with exports of USD 10 billion and a 40 per cent U.S. market share, shall be hit by tariffs of 52.1 per cent, threatening lakhs of jobs in Surat and Mumbai.
Equally, textiles and attire exports valued at USD 10.8 billion, accounting for 35 per cent share, will face tariffs of 63.9 per cent, creating immense strain on hubs akin to Tirupur, NCR, and Bengaluru.
Carpets value USD 1.2 billion and handicrafts of USD 1.6 billion are additionally anticipated to face near-collapse, with international locations like Turkey and Vietnam poised to seize India's misplaced market.
Agrifood exports value USD 6 billion, together with basmati rice, spices, and tea, may also be struck by 50 per cent tariffs, permitting opponents akin to Pakistan and Thailand to realize an edge.
Metal, aluminium, and copper exports value USD 4.7 billion, together with natural chemical substances value USD 2.7 billion, shall be topic to tariffs above 50 per cent, making a disaster for MSMEs.
The GTRI report recommended a number of measures to counter the U.S. tariff shock. These embody tax reforms and ease-of-business measures, together with a Rs 15,000 crore curiosity equalisation scheme to protect MSME exporters. Focused credit score strains and wage help have been proposed for shrimp, attire, jewelry, and carpet hubs.
The report additionally highlighted the necessity to strengthen refund schemes like RoDTEP, which neutralises hidden taxes on all exports, and RoSCTL, which gives rebates on state and central levies for textiles and attire, to assist cut back prices and keep competitiveness in world markets.
It additionally urged the federal government to push market diversification with commerce missions to the EU, Gulf, and East Asia.
It additional highlighted the necessity to set up “India+1” export hubs within the UAE, Mexico, and Africa as a method to bypass the steep tariffs imposed by the U.S.
