The decision by US President Donald Trump to impose 26 percent tariff on products coming from India has created deep concern among Indian exporters. This decision is part of Trump’s policies under which mutual tariffs are being imposed on many countries. Experts believe that this decision will directly affect India’s textile, engineering goods, electronics and gems and jewelery sectors.
Which areas are the biggest impact
These new tariffs will increase the cost of Indian exporters, which can weaken their competitive position.
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textile industry: This area, already struggling with global competition, may lag behind prices in the US market.
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Engineering goods and electronics: Due to increased cost, the demand for these products may be affected.
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Gems and Jewelry: America is a big market for this industry, and tariffs will affect the sale.
According to financial expert Ajay Bagga, the decision is based on exaggerated assessment and can weaken the hold of Indian products in the US. He also said that selling has already been seen in areas such as oil and metal, while pharmaceutical companies are currently evaluating the situation, as they are likely to impose separate regional tariffs.
Economic and market impact
There is a possibility of a decline in India’s exports due to tariffs, which can pose a massive economic risk. According to Bagga, domestic markets may still survive some extent from this effect, but the pressure on exporters will continue to increase.
In this case investors can look for more secure options, such as gold, Japanese yen or Swiss francs. Due to this, the speed of investment in emerging markets may slow down.
Reaction in stock market
After the announcement of the tariff, the stock market saw the selling of risky assets and the trend of investors increased towards safe investment means. Bagga believes that the existing uncertainty may bend the market perception in a more negative direction.
Front direction
New tariffs are a serious challenge for Indian exporters. They will now have to deal with increased cost, low profit margin and declining competition in the US market.
This entire development can have long -term economic effects, and in such a situation the industry and policy makers will have to be vigilant. In the coming weeks, it will be important to see how the government and the business world formulate a strategy to deal with this situation.
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