US tariffs provide Indian exporters with competitive advantage over rival nations: FIEO President
SC Ralhan, the President of the Federation of Indian Export Organisations (FIEO), has said that US tariffs provide Indian exporters with a competitive advantage over rival nations. He said that the movement is ‘quite favourable’. He expressed optimism about the impact of the tariffs on Indian exports, noting that while India faces a tariff of around 27 per cent, this remains manageable compared to the higher tariffs imposed on competing nations, particularly China.
He stated ‘The import tariffs imposed on peer Asian economies are more compared to the tariff rate of 27 per cent on India could be an advantage to us.’ He said ‘We have an advantage in that whatever the advantage China had with cheap raw materials, that advantage is gone. I think this is good.’ Moreover, he said that Indian manufacturers have an opportunity to increase the trade share.
Further, he stated that industries in countries like Turkey would be more adversely affected, given the disparity in tariff rates. He added ‘Despite initial concerns, India’s position remains strong, and this presents a crucial opportunity for Indian exporters to enhance production quality and maintain consistency in supply. Orders from the US are expected to start flowing to India soon.’
Besides, on the domestic front, he emphasised the need for government intervention to support Indian exporters. He urged policymakers to facilitate the modernisation of small- and large-scale industries by reducing tariffs on energy-efficient and high-productivity machinery imports.
