Indian businesses call on government support amid tariff pressure

VTV.vn - Indian exporters are calling on the government to intervene to reduce the impact of new tariffs imposed by US President Donald Trump.

Exporters fear that the 25% tariff on imported cars and 10-20% on general goods will disrupt bilateral trade flows, which reached $190 billion last year. India’s exports to the US account for 18% of its total.

Businesses said they needed credit support funds, domestic tax cuts and quick bilateral negotiations to avoid a job slump, especially in the textile, pharmaceutical and information technology sectors.

India's Commerce Ministry has pledged to diversify markets and support businesses through stimulus packages.

The US is India’s largest export market and the new tariffs are hitting India’s labor-intensive sectors like textiles, leather, footwear, and jewelry hard. India’s exports to the US fell nearly 12% in September from a year earlier, according to official data.

Economists from Citigroup Inc. bank estimate that US tariffs could reduce India's annual economic growth by about 0.6-0.8 percentage points.

Indian exporters have also asked the Reserve Bank of India (RBI) to adjust its policy to allow a weaker rupee to offset some of the damage from US tariffs. The RBI appears to be reluctant to heed this call, but the recent depreciation of the rupee has helped to cushion some of the impact of tariffs on India’s export sector.

Source: https://vtv.vn/doanh-nghiep-an-do-keu-goi-chinh-phu-ho-tro-truoc-ap-luc-thue-quan-100251106162144696.htm