India’s $48 bn exports at risk amid 50% US tariffs: FIEO

The Federation of Indian Export Organisations (FIEO) has voiced deep concern over the United States’ decision to impose an additional 25 per cent tariff on Indian-origin goods beginning today. The move has pushed total duties on several export categories to nearly 50 per cent, threatening India’s access to its largest export market.

FIEO president S C Ralhan described the development as a severe setback, warning that around 55 per cent of India’s US-bound shipments, worth approximately $47–48 billion, now face pricing disadvantages of 30–35 per cent. This, he said, makes Indian products uncompetitive compared to those from China, Vietnam, Cambodia, the Philippines, and other Asian producers.

FIEO has warned that the US’ additional 25 per cent tariff on Indian goods, raising duties to nearly 50 per cent, threatens $47–48 billion in exports, hitting textiles, leather, and other labour-intensive sectors.
President S C Ralhan urged urgent government support, credit relief, expanded PLI schemes, FTAs, and stronger diplomacy with Washington to sustain competitiveness.

The textile and apparel hubs of Tiruppur, Noida, and Surat have already reported production halts due to eroding cost competitiveness. Other labour-intensive sectors including leather, ceramics, chemicals, handicrafts, and carpets are also expected to face order cancellations and reduced global competitiveness, FIEO said in a press release.

In response, the president urged immediate government intervention. Suggested measures include interest subvention schemes, enhanced export credit support, low-cost lending for micro, small and medium enterprises (MSMEs), and a one-year moratorium on loan repayments. He also called for automatic credit limit enhancements of 30 per cent, collateral-free lending on emergency credit line guarantee scheme (ECLGS) lines and expanded production-linked incentive (PLI) schemes.

FIEO further emphasised the need for aggressive market diversification through fast-tracked free trade agreements (FTAs) with the EU, GCC, Africa, and Latin American nations, alongside investments in cold-chain and storage infrastructure. While diversification is key, the president underlined that urgent diplomatic engagement with Washington remains critical.

Promoting ‘Brand India’ through global branding, innovation, and quality certifications was also highlighted as a long-term strategy. FIEO has appealed for swift, coordinated action between exporters, industry bodies, and the government to safeguard livelihoods and maintain India’s export momentum in the face of escalating trade headwinds.

Fibre2Fashion News Desk (SG)