US tariffs could hit Indian exporters hard
With a possible India-US trade deal still uncertain and a tariff deadline looming, Indian exporters are feeling stuck.
New US tariffs could hit key sectors like apparel, gems, and chemicals—leading to fewer orders, shipping slowdowns, and factories running well below capacity.
Sudhir Sekhri from the Apparel Export Promotion Council says garment production has already dropped, with capacity reduced to about 50%.
Competition from Chinese exports to Europe
Order volumes for gems and jewelry are down, chemical exports have barely grown, and buyers are holding back because no one knows what's next.
Talks between India and the US are still happening (another negotiation round is set for August 25), but Ajai Sahay from FIEO admits the delays are stressful—even if he's hopeful about long-term trade.
Meanwhile, rising Chinese exports to Europe mean even tougher competition for Indian businesses trying to stay afloat.