US 50% Tariffs on Indian Goods Hit West Bengal's Export Industries Hard
The US has imposed an additional 25% tariff on Indian products, raising total tariffs to 50%. This decision, reportedly linked to India's Russian oil purchases, is expected to impact Rs 45,000 crore worth of Indian exports. West Bengal is particularly affected, with its marine export sector (Rs 5,000-6,000 crore exports to US) at risk, potentially jeopardizing 7,000-10,000 jobs. The state's leather industry, accounting for nearly half of India's Rs 5,000-6,000 crore annual leather exports, faces significant challenges. Engineering goods exports worth nearly $1 billion are also vulnerable, potentially affecting 50,000 to 1 lakh jobs in foundry-related industries. Exporters report that shipments and production are currently on hold as the industry assesses the full impact of these tariffs.
*this image is generated using AI for illustrative purposes only.
In a move that has sent shockwaves through India's export sector, the United States has imposed an additional 25% tariff on Indian products, effectively raising the total tariffs to 50%. This decision, reportedly targeting India's purchases of Russian oil, is expected to have a significant impact on Indian exports, with West Bengal emerging as one of the most affected states.
Impact on West Bengal's Exports
The new tariffs are projected to affect Rs 45,000.00 crore worth of Indian exports. West Bengal, known for its diverse export industries, is bracing for severe repercussions across multiple sectors.
Marine Export Sector at Risk
West Bengal's marine export sector stands to be one of the hardest-hit industries:
- The sector accounts for Rs 5,000.00-6,000.00 crore out of the state's total Rs 8,000.00 crore exports to the US.
- An estimated 7,000-10,000 jobs in processing units are now at risk.
Leather Industry Faces Severe Setback
The state's leather industry, a significant contributor to India's leather exports, is also under threat:
- West Bengal accounts for nearly half of India's Rs 5,000.00-6,000.00 crore annual leather exports.
- The US market absorbs 20% of these exports.
- The Bantala leather hub, employing five lakh people, is likely to face significant challenges.
- Kolkata's leather industry infrastructure, including 538 tanneries, 230 footwear units, and 436 leather goods facilities, may experience disruptions.
Engineering Goods Exports in Jeopardy
The engineering goods sector, another crucial component of West Bengal's exports, is not spared from the tariff impact:
- Nearly $1.00 billion worth of engineering goods exports from West Bengal to the US are now vulnerable.
- This could potentially affect 50,000 to 1 lakh jobs in foundry-related industries.
Immediate Effects and Industry Response
The imposition of these tariffs has already begun to show its effects:
- Exporters have reported that shipments and production are currently on hold.
- The industry is grappling with uncertainty as it assesses the full impact of these tariffs on their operations and future trade relationships.
As West Bengal's export industries navigate this challenging situation, the state government and industry bodies are likely to seek measures to mitigate the impact and explore alternative markets. The coming weeks will be crucial in determining the long-term effects of these tariffs on West Bengal's export-oriented economy and the thousands of jobs that depend on it.
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