Business
Indias MSME Exports In Textiles, Chemicals To Be Hit Most By US Tariffs As They Form Major Part Of Shipments To US: Crisil
New Delhi: Micro, small and medium enterprises (MSMEs) in sectors such as textiles, diamonds and chemicals, which together account for nearly 45 per cent of India’s total exports, are likely to be the most affected by the imposition of higher tariffs by the United States, according to a report by Crisil Intelligence.
The US currently levies an ad valorem duty of 25 per cent on Indian goods, but has announced an additional 25 per cent tariff that will take effect from August 27, raising the total duty to 50 per cent. The report noted that this increase will significantly affect Indian exporters, especially MSMEs, which dominate key export sectors.
The textiles, gems and jewellery, and seafood industries, which together make up about 25 per cent of India’s total exports to the US, are likely to be hit the hardest. MSMEs have more than 70 per cent share in these sectors. In the chemicals sector, where MSMEs account for about 40 per cent share, the higher tariffs will also hurt exporters.
Pushan Sharma, Director, Crisil Intelligence said, “Partial absorption of the increased product prices due to higher tariffs will put pressure on MSMEs, squeeze their already-slim margins and pose a material challenge to their competitiveness. For instance, those into readymade garments (RMG) are expected to lose ground in the US as the tariff increases to 61 per cent, including 50 per cent additional ad valorem duty, compared with peers in Bangladesh and Vietnam tariffed at 31 per cent. The Tirupur cluster, which accounts for over 30 per cent of India’s RMG exports, will be severely impacted as approx. 30 per cent of its exports are to the US.”
In the gems and jewellery sector, Surat’s diamond polishers, who dominate the country’s exports with over 80 per cent share, will also be severely affected. Diamonds form over half of India’s total gems and jewellery exports, with the US being a major consumer, accounting for nearly a third of shipments. Similarly, seafood MSMEs will struggle to compete with Ecuador, which enjoys a lower 15 per cent tariff and is geographically closer to the US.
The chemical industry also faces stiff competition from Japan and South Korea, which face lower tariffs. Auto component MSMEs supplying gearbox and transmission equipment may also feel the heat as the US has a significant approx. 40 per cent exposure in this segment, though overall auto component exports to the US remain limited at 3.5 per cent of India’s production.
Overall, the US tariffs will affect about USD 19 billion worth of exports across textiles, chemicals, seafood and auto components. To mitigate the impact, Crisil mentioned that India could boost exports to other destinations and leverage the India-UK free trade agreement.
Pritti MistryBusiness reporter, BBC News
FordThe first electric vehicles (EV) eligible for the £3,750 discount under the government’s grant scheme have been announced.
The Department for Transport confirmed Ford’s Puma Gen-E or e-Tourneo Courier would be discounted as part of plans to encourage drivers to move away from petrol and diesel vehicles.
Under the grant scheme, the discount applies to eligible car models costing up to £37,000, with the most environmentally friendly ones seeing the biggest reductions. Another 26 models have been cleared for discounts of £1,500.
Carmakers can apply for models to be eligible for grants, which are then automatically applied at the point of sale.
More vehicles are expected to be approved in the coming weeks and the DfT said the policy would bring down prices to “closely match their petrol and diesel counterparts”.
The government has pledged to ban the sale of new fully petrol or diesel cars from 2030.
But many drivers cite upfront costs as a key barrier to buying an EV and some have told the BBC that the UK needs more charging points.
According to Ford’s website, the recommended retail price (RRP) for a new Puma Gen-E starts from £29,905 while a petrol equivalent is upward of £26,060. With the reduction applied, buyers would be looking in the region of £26,155 for the EV version.
The grants to lower the cost of EVs will be funded through the £650m scheme, and will be available for three years.
There are around 1.3 million electric cars on Britain’s roads but currently only around 82,000 public charging points.
Full list of EVs eligible for the £1,500 discount
- Citroën ë-C3 and Citroën ë-C3 Aircross
- Citroën ë-C4 and Citroën ë-C4 X
- Citroën ë-C5 Aircross
- Citroën ë-Berlingo
- Cupra Born
- DS DS3
- DS N°4
- Nissan Ariya
- Nissan Micra
- Peugeot E-208
- Peugeot E-2008
- Peugeot E-308
- Peugeot E-408
- Peugeot E-Rifter
- Renault 4
- Renault 5
- Renault Alpine A290
- Renault Megane
- Renault Scenic
- Vauxhall Astra Electric
- Vauxhall Combo Life Electric
- Vauxhall Corsa Electric
- Vauxhall Frontera Electric
- Vauxhall Grandland Electric
- Vauxhall Mokka Electric
- Volkswagen ID.3
The up-front cost of EVs is higher on average than for petrol cars.
According to Autotrader, the average price of a new battery electric car was £49,790 in June 2025, based on manufacturers’ recommended prices for 148 models.
The equivalent for a petrol car was £34,225, but the average covers a broad range of prices.
Transport Secretary Heidi Alexander said the grant scheme was making it “easier and cheaper for families to make the switch to electric”.
Edmund King, president of the AA, said drivers “frequently tell us that the upfront costs of new EVs are a stumbling block to making the switch to electric”.
“It is great to see some of these more substantial £3,750 discounts coming online because for some drivers this might just bridge the financial gap to make these cars affordable.”
Business
Donald Trump tariffs: Why did Nifty50, BSE Sensex tank in trade? Top reasons stock for market fall – The Times of India
Stock market today: Nifty50 and BSE Sensex, the Indian equity benchmark indices, crashed in trade on Thursday, a day after Donald Trump’s 50% tariffs on India came into effect. While Nifty50 closed at 24,500.90, down 211 points, BSE Sensex ended at 80,080.57, down 706 points or 0.87%.The newly imposed tariffs emerged as the main factor affecting market performance, whilst investors simultaneously grappled with additional challenges, including unfavourable global market indicators and continuous withdrawal of foreign investments. These factors collectively intensified the market decline, causing the benchmark indices to fall further.The severe downturn resulted in BSE-listed companies losing Rs 4.14 lakh crore in market capitalisation, bringing the exchange’s total market value down to Rs 445.80 lakh crore.
Why did the stock market fall today? Top reasons
50% US tariffs on IndiaThe new 25% additional tariffs from Washington on Indian goods became effective on Wednesday, creating uncertainty for exporters and overall market sentiment.Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments, believes these duties will affect equities temporarily but shouldn’t cause widespread concern.“The 50% tariff imposed on India, which has already come into effect, will weigh on market sentiments in the near-term. But the market is unlikely to panic since the market will view these high tariffs as a short-term aberration which will be resolved soon,” Vijayakumar said, noting US Treasury Secretary Scott Bessant’s statement that “at the end of the day India and US will come together.”Additionally, Vijayakumar identified high valuations and poor earnings performance as ongoing issues. He expects export-focused industries to experience short-term difficulties, whilst suggesting investors consider moving towards reasonably priced domestic consumption sectors. He recommends transitioning from volatile small-cap investments to more stable large-cap consumer stocks for better risk management.FII sell-off continuesForeign institutional investors extended their selling momentum for the third consecutive session. Exchange data showed that on August 26, FIIs sold shares valued at over Rs 6,500 crore. Conversely, domestic institutional investors emerged as net buyers, investing Rs 7,060 crore.The selling pattern has affected multiple sectors. In early August, FIIs withdrew approximately Rs 31,900 crore across eight sectors, with financial and technology sectors experiencing the highest outflows. Net equity sales reached Rs 20,976 crore in the first half of the month, following July’s withdrawals and pushing the total outflows for the year to Rs 1.2 trillion.Earlier this month, Jefferies reported that foreign portfolio investor presence in India had reached its lowest level in a decade. Despite consistent domestic inflows providing support, analysts suggest that any market recovery could remain unstable.Dr. V.K. Vijayakumar of Geojit Investments emphasised the importance of domestic institutional support. “The strong pillar of support to the market is the aggressive buying by DIIs flush with funds,” he noted, explaining that domestic investments are helping balance the foreign outflows.Global markets in redAsian markets displayed weakness on Thursday as investors weighed Nvidia’s exceptional earnings against growing worries regarding the company’s business interests in China.The MSCI Asia-Pacific index, excluding Japan, fluctuated throughout the session before declining 0.2%. Similarly, US stock futures declined during extended trading hours, with S&P 500 e-minis dropping 0.2% and Nasdaq futures declining 0.4%. Despite reporting outstanding results, Nvidia’s shares retreated as uncertainties persisted over its Chinese operations amidst ongoing US-China trade tensions.Japanese markets showed volatility following news that Tokyo’s chief trade representative cancelled a planned visit to Washington, postponing discussions about a recently concluded trade agreement. The Nikkei 225 registered a 0.4% increase. In contrast, Hong Kong’s market performance weakened, with the Hang Seng Index recording a 1% decline.Market sentiment further deteriorated following US political developments, as President Donald Trump announced the removal of Federal Reserve Governor Lisa Cook. This decision raised questions about the central bank’s autonomy, although Cook has indicated her intention to legally contest the dismissal.Technicals show market weaknessTechnical indicators suggest market weakness ahead, although some strategists anticipate a potential short-term recovery.At Geojit Investments, Chief Market Strategist Anand James observed bearish conditions, identifying 24,071-23,860 as target levels. He acknowledged that the sharp 2% drop over four sessions could spark a recovery, with 24,780 and 24,870 acting as resistance points. “Inability to float above 24,630 or clear 24,900 will signal that bears continue to have the upper hand,” he said.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
Business
Stock Market Updates: Sensex Slides 700 Points, Nifty Below 24,550; IT, Realty Stocks Under Pressure
Last Updated:
Domestic equities are trading under pressure on Thursday, with export-focused stocks facing headwinds
Sensex Today.
Sensex Today: Indian equities extended losses on Thursday, August 28, as markets digested the impact of fresh 50% tariffs on US exports that came into effect a day earlier.
At 1:30 PM, the BSE Sensex was down 562 points, or 0.70%, at 80,224, while the Nifty50 fell 163 points, or 0.66%, to 24,549.
Shriram Finance, HCL Tech, Infosys, Sun Pharma, Tata Motors, TCS, Power Grid, Bharti Airtel, IndusInd Bank, ICICI Bank, Trent, Jio Financial, and M\&M led the Nifty losers. On the other hand, Titan, Adani Ports, Asian Paints, Larsen & Toubro, Eternal, and Bajaj Finance bucked the weak trend.
The new duties, among the steepest in Asia, follow India’s continued imports of Russian crude oil and have strained ties between New Delhi and Washington. Shares of export-oriented sectors such as apparel, textiles, auto parts, engineering goods, gems & jewellery, shrimp, and carpets were in focus.
In the broader markets, the Nifty Midcap and Smallcap indices shed 0.9% each. Volatility also inched up, with India VIX down 0.9%.
Sectorally, IT and Realty indices slipped over 1% each, while all major sectors ended in the red barring Consumer Durables, Metals, and Oil & Gas.
Global Cues
In contrast, most Asian benchmarks were trading higher, tracking overnight US gains before a late pullback. Japan’s Nikkei rose 0.3%, while South Korea’s benchmark gained 0.3%, leading advances on the MSCI Asia Pacific index.
Meanwhile, US futures slipped in Asian trading after chipmaker Nvidia’s sales outlook missed lofty expectations, hinting at a slowdown in AI-driven growth after years of strong momentum.
On Wednesday, the S&P 500 gained 0.24% and the Nasdaq rose 0.21%, both closing in positive territory.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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