New Delhi: The recent wave of American tariff has caused an enormous blow to the Indian export business and brought about a severe stagnation in industries such as the textile industry, engineering products, chemicals, electronic products, and auto parts. Most exporters are increasingly recording less orders, delayed payments and weaker demand among the American buyers.
India has one of the biggest export markets in the US. Any American change would have a direct impact on the Indian industries particularly the small and medium-sized businesses. The new tariffs have made the Indian goods expensive in the US market this time and the Indian products are not as competitive as they are with other countries.
Consequently, manufacturing plants in India are lowering the output, decreasing the working hours and decreasing the rate of recruitment. Industry associations are warning that unless the situation is corrected, millions of jobs particularly those that involve a lot of labour such as textile and handicrafts industries will be at stake.
According to exporters, they are attempting to bargain with US purchasers but a significant number of customers are opting towards cheaper companies situated in countries that have not been affected by the tariffs. This has raised the concern of the Indian manufacturers.
Indian government is also in talks with the US officials to curb the blow on Indian exporters through a resolution. Meanwhile, some trade organisations are asking the government to provide relief in the form of easier loans, lower domestic taxes as well as export incentives to ensure companies withstand the slowdown.
