‘Indian industry has thrived under pressure’: Assocham President expresses confidence as U.S.' 50% tariffs kick in
/ 2 min read
Sanjay Nayar, President, Assocham. As industries navigate through the new normal of a 50% reciprocal tariff by the U.S., Nayar, in his statement, reinforces that the Indian industry has always thrived in the face of adversity.
‘Indian industry has thrived under pressure’: Assocham President expresses confidence as U.S.' 50% tariffs kick in
As India faces a 50% tariff from the U.S., Assocham President Sanjay Nayar remains optimistic about the Indian industry's resilience. He highlights the sectors' adaptability and innovation, emphasising diversification into new markets. Despite challenges, Nayar believes the tariffs will bolster India's resolve for self-reliance and global leadership, with strong government support aiding the transition.
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According to Assocham President Sanjay Nayar, the industries impacted the most by the U.S. tariffs—including textiles, gemstones, and agriculture—have ramped up their efforts to diversify exports into new geographies, while strengthening competitiveness domestically.
Sanjay Nayar, President, Assocham. As industries navigate through the new normal of a 50% reciprocal tariff by the U.S., Nayar, in his statement, reinforces that the Indian industry has always thrived in the face of adversity.
As India braces for a 50% reciprocal tariff from the U.S., Indian industry finds itself in a situation which is nothing short of a trial by fire. However, even as things look foreboding, Sanjay Nayar, President of Assocham, has expressed confidence in the Indian industry’s ability to weather the tariff storm, as he believes that the Indian industry has always thrived under pressure.
“The 50% tariff is undoubtedly a challenge…our businesses have a proven track record of adapting quickly, innovating and expanding into new frontiers,” said Nayar in a statement. Sectors such as textiles, gemstones, jewellery, agriculture, and shrimps—which are bearing the brunt of the 50% tariffs—have ramped up efforts to accelerate diversification into Africa, Latin America, Europe, and ASEAN, while strengthening competitiveness domestically, according to Nayar.
Nayar avers that, armed with strong government support, the tariff-induced disruption will not weaken India’s trade ambitions. “It will only strengthen India’s resolve toward resilience, self-reliance and global leadership,” he added in his statement.
The imposition of higher tariffs by the U.S. will significantly impact micro, small and medium enterprises (MSMEs), which account for as much as 45% of India’s total exports, according to Crisil.
The textiles, gems and jewellery, and seafood industries account for around 25% of India’s total exports to the U.S. “MSMEs have more than 70% share in these sectors and will be hit hard. Another sector likely to face the heat is chemicals, where MSMEs have a 40% share,” said Crisil.
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Tirupur’s readymade garment makers and Surat’s diamond polishers are set to bear the biggest brunt, warned Crisil. “The Tirupur cluster, which accounts for over 30% of India’s RMG exports, will be severely impacted as 30% of its exports are to the U.S.,” the rating agency said.
Meanwhile, the Federation of Indian Export Organisations (FIEO) has expressed grave concern over the total duties on many export categories rising to 50%, making those products uncompetitive in the U.S. market.
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The move will severely disrupt the flow of Indian goods to its largest export market, and approximately 55% of India’s US-bound shipments (worth $47–48 billion) are now exposed to pricing disadvantages of 30–35%, S. C. Ralhan, president, FIEO, said. Trump tariffs will render these goods uncompetitive compared to those from their competitors in China, Vietnam, Cambodia, the Philippines, and other Southeast and South Asian countries, he added.