Indian exporters plead with government, loan and help at affordable rates for relief from American tariffs
America Indian exporters have pleaded with the government to avoid imposing 25 percent tariffs on goods exported from India. Industry officials said Indian exporters from various sectors including food, sea and textiles have demanded financial assistance and affordable loans from the government to deal with 25 percent trump duty. He said that at a meeting with Commerce and Industry Minister Piyush Goyal in Mumbai, some exporters demanded schemes like production-based incentive (PLI). “Exporters expressed their opinion on the problems faced in the US market due to high fees announced by US President Donald Trump,” said an official. He further stated that the minister has suggested that the exporting community should send its suggestions in writing. He also demanded loans and fiscal incentives at affordable rates.
Interest rates in India are quite high
According to exporters, interest rates in India are eight to 12 percent or more. In competitive countries, the interest rate is very low. For example, the central bank in China is 3.1 percent in Malaysia, three percent in Malaysia, two percent in Thailand and 4.5 percent in Vietnam. He said that “the situation in areas like apparel and shrimp is not good. American buyers have started to cancel or stop the order. In the coming months, this may affect India’s exports to the US, and due to the decline in exports, it can be jobs.” Also, he also said that it would be difficult for the government to give fiscal incentives.
Tariff will be increased from August 7
The 25 percent fee announced this week will be applicable from August 7 (Indian time at 9.30 am). This duty will be in addition to the current standard import duty in the US. The areas that will suffer the brunt of this high tax include textiles/textiles ($ 10.3 billion), gems and jewelery ($ 12 billion), shrimp ($ 2.24 billion), leather and shoes-slippers ($ 1.18 billion), chemicals ($ 2.34 billion), and electrical and mechanical machinery (about nine billion). America’s stake in India’s leather and apparel exports is more than 30 percent.
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