Speaking to CNBC-TV18, Gokaldas Exports Vice Chairman and MD Sivaramakrishnan Ganapathi said, “We have to wait and see if the additional 25% tariff is applied on exports to the US. If it does, the industry will need support.”
Ganapathi said that exports to the US have been on an increasing trend and that the US remains one of India’s most preferred markets. “We will have to wait and see if we can diversify to other countries,” he added.
He also warned of a bigger risk, the possibility of India losing its foothold in the US market. “If a 50% duty stays, brands will gradually move business to other countries. We need short-term handholding to hold fort until then,” he said.Ganapathi explained that pivoting to alternative markets takes at least a year or more, making immediate support critical. He stressed that micro, small, and medium enterprises (MSMEs), which account for a large share of exporters, could struggle to survive without working capital relief or easier financing.
While tariff-linked assistance is urgent, he said that structural reforms to improve ease of doing business are equally necessary for long-term competitiveness.
Trump’s announcement of an additional 25% penalty on India for buying Russian oil comes into effect on August 27 and will take the total tariff to 50%, making exports unviable in several sectors.
Jefferies analyst Mahesh Nandurkar had earlier warned that the new tariff rate could put a large majority of India’s $87 billion worth of exports to the US, equivalent to 2.2% of GDP, at risk.
Only pharmaceutical and electronics exports, which together account for roughly 30% of India’s shipments to the US, remain exempt for now. Analysts say the most impacted sectors will be textiles, chemicals, auto ancillaries, and fisheries.
