"Indian CEO confirms readiness for next shipment to US, asserting customers are accepting of increased tariffs"
In a significant development, a US federal appeals court in Washington, DC, has ruled that most tariffs imposed under former President Trump's emergency powers were unlawful. However, this ruling does not directly affect India's tariff situation with the US.
The US announced a 50% tariff on textile and apparel imports from India, a move that has caused ripples across India's export hubs for readymade garments, including Tiruppur, Noida, and Ludhiana. The tariffs are affecting businesses like Teestra Lifestyle, a company specializing in custom T-shirts and small-batch apparel for businesses.
Vasant Marimuthu, founder and CEO of Teestra Lifestyle, is doubling down on his US business despite the tariff hike. He has stated that his customers in the US are willing to pay the additional tariff. However, other exporters are finding themselves in precarious financial situations due to these tariffs and rising input costs. Many small and medium-sized units in the textile industry are feeling the pinch, with shrinking orders and anxious buyers.
Commerce Minister Piyush Goyal has asserted that India is ready for a free trade agreement but will not appear weak. He stated that India will not "bow down" to US pressure, a sentiment echoed by the Indian government in response to the US tariffs.
In a show of solidarity, Indian entrepreneurs in the textile and apparel sector have formed alliances to collectively tackle increased costs. They do not feel uncomfortable because it strengthens their negotiating power and market resilience.
Meanwhile, on the domestic front, Harsh Goenka, a prominent businessman, posted on social media, "Billionaires leaving UK and US...but why aren't they returning to India?"
India is the sixth-largest exporter of textiles and apparel globally, with shipments worth $34.4 billion in FY24. The country produces nearly 22,000 million pieces of garments annually and employs millions across the value chain.
The US court's decision could complicate Washington's legal position on the sweeping duties, though it is not directly linked to India's case. The netizens have reacted to this statement, but the specifics of their reactions are not provided in the text.
As the situation unfolds, it is clear that the US tariffs on Indian textiles and apparel are causing significant disruptions in the industry. Exporters in India are currently caught between shrinking orders, anxious buyers, and political grandstanding. The resilience and unity shown by Indian entrepreneurs in the face of these challenges are commendable and offer a glimmer of hope for the future.
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