The exporters have urged the government to reintroduce the interest subvention scheme. Indian exporters, mainly the micro, small and medium-scale enterprises, have 2% to 3% disadvantage because of the high interest rates in India compared to the competing countries.
| Photo Credit: SIVA SARAVANAN S
Exporters of textiles, garments, and engineering goods fear that the 25% tariff imposed by the U.S. will not only lead to loss of orders but also put them in a quandary as no other market has the high volume demand as the U.S.
The Union Minister for Commerce and Industry Piyush Goyal met delegations from the textile and engineering export councils on Saturday.
“We have impressed upon the Minister that for some of the textile products, 60% to 70% exports goes to the U.S. We cannot get such high volume from any other market and if we lose the US buyers, companies supplying these products will be hit hard,” said one of the textile exporters.
In the case of engineering goods too, the U.S. is the leading buyer for some of the products for several years. “The competing countries have relatively lesser tariff. Countries that have tariff higher than India are really not competitors. Hence, there should be a detailed study now on the product lines that will be hit by the 25% tariff,” said an engineering exporter.
The exporters have urged the government to reintroduce the interest subvention scheme. Indian exporters, mainly the micro, small and medium-scale enterprises, have 2% to 3% disadvantage because of the high interest rates in India compared to the competing countries. Now, they will face higher cost disadvantage because of the tariff. The exporters have also sought supportive measures from the government so that they can supply at competing prices to the U.S. buyers.
Published – August 02, 2025 08:23 pm IST