How much will India have an impact of 50% tariff of America? This latest statement of the Ministry of Commerce came
The central government on Thursday described the situation as ‘serious but control’ amid the US decision to impose tariffs of up to 50% on some products exported from India. A senior Commerce Ministry official said that the decision will definitely have an immediate effect on major areas such as textile, chemical (chemical) and machinery, but it will not be harmful in a long -term point of view. According to the official officer, the affected exporters are constantly contacting the government and sending their suggestions.
These industries say that the order can become a decline, liquidity crisis and financial pressure, which will directly affect production and operation. “Industries are currently struggling with economic pressure and have requested the government for short -term relief.” The government also clarified that their suggestions have been taken seriously and now work is being done to implement them fast.
Export promotion mission will get speed
The Ministry of Commerce is working towards implementing the Export Promotion Mission as soon as possible, so that exporters can get financial and structural support. The official described the situation as a “a warning sign” and said that the time has come that India makes its supply chain more strong and flexible, whether it is export or import.
Business talks with America continue, but not hurry in agreement
On the ongoing bilateral trade talks with the US, the official said that the conversation is going on and is expected to move forward soon. However, at present, formal talks regarding bilateral trade agreement have not started. To proceed on bilateral trade agreement, it is necessary to solve the additional 25% fee leveled by the US first. If there is an agreement with these tariffs, then it will not give any special relief in exports.
Domestic demand can become buffer
The government official said that the situation is not really as serious as the situation looks. India’s domestic market is continuously expanding and due to GST reforms, local demand has strengthened. In such a situation, the consumption of the stock that will not be exported is possible in the domestic market.
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