- Largest exporters body FIEO asked to report on impact of 50% US tariff on exports
- Finance Minister Nirmala Sitharaman urged exporters not to lay off workers for now
- The minister "assured us the government will help exporters who are seriously affected," SC Ralhan said.Â
The largest exporters' organization in the country has been asked to submit a report to the government on the possible impact of the 50 per cent tariff imposed by the US. At a meeting with Union finance minister Nirmala Sitharaman today, the Federation of Indian Export Organization (FIEO), the largest body of Indian exporters, were asked not to lay off workers for now.
SC Ralhan, president of the federation, told NDTV: "The Finance Minister has sought a written report from FIEO How much impact will 50 per cent tariff have on different export sectors. After reviewing this, the government will decide on the future strategy".
At the meeting, meant to review the possible impact of the tariff, the minister "has assured us that the government will help the exporters who are seriously affected," he said.
Last month, US President Donald Trump had announced reciprocal tariffs of 25 per cent that came into effect on August 7. Then he imposed another 25 per cent over India's purchase of Russian oil, bringing the total to 50 per cent, which came into force yesterday.
Among the industries worst-hit by the double tariff is expected to be include gems and jewellery, textile and apparel, carpets, handicrafts, leather and footwear, which could lose the price war with cheaper products from China, Bangladesh and Vietnam.
There has also been a flood of ideas to counter its effects -- from using this as an opportunity to develop ease of doing business to formulating a new export policy and building stronger ties with other nations to divert exports.
The prospect of a new export policy or the government's assurance that negotiations are on with the US and the matter is likely to be resolved, has done little to assure the exporters. Many have sought a relief package from the government on the lines of the one during Covid, that involved help with the banks with reduced interest and more time to repay loans.
The government is hoping the domestic market will help absorb the impact for now. As a long-term policy, there has been a call to go back to "Swadeshi". Prime Minister Narendra Modi has called upon people to be "vocal for local".
