‘Pushback on Indian exports will affect FTWZs, SMEs may suffer too’

Mohit Kapoor, Chair- Projects and Events Committee, Warehousing Association of India said, “Higher tariffs disrupt predictability for third-party logistics (3PL) players and freight forwarders. As clients recalibrate their US-focused strategies, Indian logistics operators face uncertainty in volumes and scheduling. Small and medium enterprises (SMEs), often dependent on US trade corridors, bear the brunt of warehousing rent pressures, longer storage periods, and altered fulfillment cycles. The pushback on Indian exports also affects Free Trade Warehousing Zones (FTWZs), which are designed to facilitate global trade. Lower US-bound traffic threatens the viability of these FTWZs, making it imperative to diversify toward alternate geographies or value-added services. Despite these challenges, a notable silver lining emerges when viewed in a broader Asian context. Countries like Vietnam, Indonesia, and even China have been subjected to steeper and more sweeping US tariffs—sometimes nearly double the rates imposed on Indian goods. This offers India a relative competitive advantage in certain key sectors where US buyers are seeking reliable alternative sourcing options.”