A 25% tariff imposed by the United States on Indian imports from August 1 is set to hit Chhatrapati Sambhajinagar's export-driven industries hard. The city's industrial hubs export goods worth nearly Rs 25,000 crore annually, with Rs 2,700 crore of it going to the US.
Key industrial estates in Waluj, Paithan, Chikalthana, Shendra, and Shendra-Bidkin AUDIC under AURIC contribute heavily to this export basket, supplying optical fibre cables, pharmaceuticals, auto parts, electrical equipment, suncontrol films, grains, fruits and vegetables. Until now, the US imposed only 5% duty on pharma and 14 per cent to 15% on other goods. The sudden hike to 25% has left local exporters worried about rising costs and shrinking competitiveness.
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Exporters have begun re-structuring operations, focusing on cost-cutting and reduced margins to stay afloat. Industry leaders believe the Centre may step in with relief and are optimistic about a balanced trade deal with the US similar to the UK agreement.
"In the last four months, the US has slapped tariffs on several nations. Indian firms competing with US-based companies will face the worst impact. Exporters may have to work on lower profit margins to survive. Still, we hope for a fair trade deal soon," said Mukund Kulkarni, an Industrialist
"US buyers will now have to pay 25 per cent more for quality Indian goods. We believe American consumers will push leaders like Trump to reconsider this move," Arjun Gaikwad.