The tariffs that the US government has imposed have left significant implications on India’s economy. These tariffs are set to balance the trade imbalance, and the target is on specific industries. Let’s see which export sectors of India are most likely to get impacted by the tariffs set by the US government.
A tariff is a tax or duty imposed by government on goods and services that are imported or rarely exported. Tariffs are imposed on goods for various reasons, like protecting domestic industries, generating revenue, and regulating trade.
1. Pharmaceutical Industry
India is one of the leading exporters of medicines and drugs to the US. Tariffs on these goods could make it more expensive for American buyers, which reduces the demand for Indian medicines in the US market and global markets.
2. Electronics and Technology
India exports a significant amount of electronic products to the US. If the tariffs are imposed on these items, this could make Indian products less in demand in the US market. This will in turn impact the manufacturers and exporters in India.
3. Textiles and Apparel
Due to the abundance of resources, the textile and apparel industry is a major contributor to India’s exports in total. US tariffs imposed on these products can lead to reduced sales and revenue for Indian textile companies in the US or American market, which ends up affecting employment in this labor-intensive sector and makes many employees jobless.
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4. Agriculture and Food Products
India is known for its quality and exports various agricultural products, including authentic spices, rice, and tea, to America. When tariffs are imposed on these goods, this could have a huge impact on Indian farmers and exporters by making their products more expensive for American consumers, thus reducing the demand for the products.
5. Automobile Components
The automobile industry in India has developed significantly enough to export to the US market. The high tariffs on this sector can have a significant impact on supply chains that reduces demand for Indian-made parts.
6. Steel and Aluminum
India’s steel and aluminum exports are significant to the American market. If this sector faced high tariffs in the past. Additional tariffs could further impact these industries, leading to reduced production and job losses in the home country.
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