Key Indian exports such as textiles, jewelry, leather, furniture, and consumer goods will become less competitive compared to products from countries such as Vietnam, Bangladesh, or Mexico.
Indian CEOs Protest (Source: AI Image)
Indian business titans have strongly reacted to the United States' 50% tariff imposition on India - 25% as a reciprocal duty and an additional 25% as a penalty for buying oil from Russia.
However, the imposition has drawn fierce pushback from India’s corporate leaders.
Voicing an intense urge on building a strong and self-reliant India, the business honchos shared their thoughts on several social media platforms, some on LinkedIn and others on X.com.
Deepinder Goyal, Co-founder & CEO of Zomato wrote on LinkedIn, “Every few years, the world reminds us of our place. A threat here, a tariff there. But the message is the same: stay in your lane, India.”
Urging that control be taken into our own hands, Goyal further added, “Global powers will always bully us, unless we take our destiny in our own hands. And the only way to do that is if we collectively decide to become the world's largest most unapologetic superpower. In economy, in technology, in defense, and most importantly, in ambition. There is absolutely no other way.”
Varun Berry, MD & CEO of Britannia Industries wrote on LinkedIn, “A time to rethink how Brand India revamps its plans to surge forward: a) serious infrastructure build with world class cities. b) ease of doing business at a much-elevated level with a revamp on land & labour laws. c) attractive tourist centres to get the world to experience the richness of Indian history & culture. d) safety, security for all and serious focus on customer service. e) support India made brands to gain serious heft. No reason why India can’t shine brighter than any other economy in the world.”
Harsh Goenka, Chairman, RPG Enterprises tweeted, “You can tariff our exports, but not our sovereignty. Raise your tariffs-we’ll raise our resolve, find better alternatives, and build self-reliance.”
The 50% U.S. tariff could significantly dent India's export-driven retail sectors, particularly textiles, jewellery, and leather, leading to revenue drops, job losses, and a chain reaction in the broader retail supply ecosystem. The industry will need government support, market diversification, and agile pricing strategies to weather the storm.
Precisely, this could translate to Indian goods being more expensive for U.S. buyers.
Key Indian exports such as textiles, jewelry, leather, furniture, and consumer goods will become less competitive compared to products from countries such as Vietnam, Bangladesh, or Mexico.
The U.S. retailers may cut back orders from Indian suppliers due to higher landed costs.
Indian MSMEs (especially those supplying fashion, lifestyle, and handicrafts) could face cancellation of contracts, delayed shipments, or renegotiated pricing.
Analysing the impact, Sumit Agarwal, Joint Secretary General at Confederation of All India Traders (CAIT) said, “Broadly speaking, uptrend and buoyancy in the domestic Indian market with the upcoming festival season may to an extent negate the effect of the tariffs once the uncertainty and ambiguity settles down. India’s huge domestic consumption can act as a cushion against any major impact on the domestic retail sector. Having said this, such high tariffs imposed by Trump are illogical, unreasonable and unrealistic. Indian exporters will be seriously hurt but also American consumers will bleed heavily. This action by the USA is nothing short of economic vandalism, shortsighted and ultimately self-defeating.”
He further emphasised that the country will bounce back, and the domestic business ecosystem can become self-reliant adopting suitable reforms.
“India won’t beg. We’ll bounce back. A brilliant opportunity to announce big bang reforms, aggressively promote ease of doing business and make India a strong self- reliant nation. The Crisis must be fully utilised,” Agarwal added.
|
Retail-Linked Sector |
|
Impact |
|
Apparel & Textiles |
|
Heavily dependent on the U.S. market; high price sensitivity will cause demand to drop. |
|
Jewelry & Gems |
|
India exports a large portion of cut and polished diamonds to the U.S.; 50% tariffs could cripple margins. |
|
Leather Goods |
|
Bags, shoes, and belts face stiff competition from lower-cost countries. |
|
Handicrafts & Décor |
|
These luxury/non-essential goods are especially vulnerable to price hikes. |
Further, the 50% tariff imposition would indirectly impact the supply chain ecosystem resulting in Indian manufacturers overstocking or dumping inventory.
It could further create layoffs and job cuts coping with the reduced orders further weakening consumer purchasing power domestically.
Consequently, brands might re-channel exports into the domestic retail market, creating short-term supply gluts.
Empower your business. Get practical tips, market insights, and growth strategies delivered to your inbox
By continuing you agree to our Privacy Policy & Terms & Conditions
