US Tariff on India: Chamber of Trade and Industry (CTI) chairman Brijesh Goyal fears that the 50% tariff imposed by the US on India could destroy many major industries in the country.

US Tariff on India: The Chamber of Trade and Industry (CTI) has written a letter to Prime Minister Narendra Modi , saying that the 50 percent tariff imposed by America on India can destroy many big industries of the country. This can put the livelihood of millions of Indians at risk.

Indian goods will become expensive in America. 

CTI Chairman Brijesh Goyal said, a 50 percent US tariff will have a devastating effect on many industries of India, like textile, leather, gems and jewellery, auto components, chemicals, pharma, seafood industry, electronics. He said that due to the increased tariff, Indian goods will become up to 35 percent more expensive than other competitors in the US market, due to which buyers will give preference to things made in other countries. 

There will be a strong impact on exports 

According to CTI, such a hike in tariffs could impact Indian exports worth more than US$48 billion. Sectors such as engineering goods, which had exports worth Rs 1.7 lakh crore last year, are likely to be hit hard. Similarly, gems and jewellery exports worth Rs 90,000 crore and India's fast-growing electronics exports are also in serious danger. 

Products which were earlier subjected to 10% tariff will now be subjected to 50% tariff, which will increase the cost of American buyers drastically. Drug exports worth Rs 92,000 crore last year will also face difficulties. Drugs which were earlier duty-free in the US will now see their prices increase by up to 50%, which will put Indian drug companies at a loss compared to other suppliers like Vietnam. 

America will have to give a strong answer

However, despite these losses, CTI's advice to the government is that India should also retaliate against the US. The US should be given a strong reply by imposing reciprocal tariffs on American goods. He said, "India should not be afraid of this pressure. We should reduce our dependence on American imports and also look for new markets in countries like Germany, Britain, Singapore and Malaysia, where the demand for engineering goods is increasing. We have to teach the US a lesson by imposing retaliatory tariffs."