Bhopal (Madhya Pradesh): Like other states in the country, the US’s decision to impose a 26% tariff on Indian imports has also affected industrialists in MP.
The export of steel, aluminium, machine parts, metals, textiles, cereals, packaged materials, and diamonds is expected to suffer due to the tariff, forcing industrialists to seek alternatives that will help them remain competitive in the market. However, they admit the effect will be short-term.
They may also go for cost-cutting measures for their survival. Pithampur Industries Association President Gautam Kothari said to the Free Press that the new tariff will affect industries in the short term.
Pithampur primarily exports textiles, packagingmaterial, steel, and aluminium to the US. In these challenging times, he said, industries will opt for cost-cutting and other measures to increase their efficiency.
Ultimately, he said, this reciprocal tariff will affect the US more. Diamond traders are seeing the development as a disaster to their business.
The reason is that diamonds extracted from the mines of Panna are mostly exported to Europe and the US. Naresh Jain, a well-known diamond trader of Panna, said the diamond market has been suffering for the past three years due to the Russia- Ukraine war, causing the prices to drop by half. US tariff comes as a double blow to the industry.
Mandideep Industries Association President Rajiv Agrawal said the new tax regime is going to cast a shadow on exports as the volume of trade will shrink. American buyers may also demand a discount on imported items. Open export to the US will be affected more.
However, Agrawal said the tariff will have a short-term impact on India, whose exports to the US are 2% of its GDP.
