‘Tariffs will majorly impact agri, electronics & leather good exports’

Praveen Manoharran, MD & CEO, Breezonica Logistics and Warehousing LLP said, “The major impact is going to be on the Jewellery and precious stones segment, as pharma and electronics are exempt from the US Tariffs. It was evident in the Modi’s pitch at Surat, which is the top exporter to USA. Since Jewellery and precious stones fall under luxury segment it is not going to be of major impact due to tariffs and recently Trump said Gold is exempt from the tariffs. Luxury segment buyers see the craftsmanship and the uniqueness in the product, unlike Pharma industry for quality and compliance, unlike electronics industry which looks for quality, compliance and cost effectiveness. The top 3 major export sectors from India to USA are Jewelry & precious stones, Pharma & Electronics. “Vocal for Local” pitch is going to impact the FMCG, QSR, Liquor, Dairy & Cosmetics segments wherein the USA companies have lot of market share in India. This is intended to up the pressure on the POTUS, Donald Trump. Vocal for Local pitch is going to pressure the American companies in the above segments. As you can see that Campa Cola, the Reliance brand is aggressively taking on Coca cola & Pepsi by exclusive tie ups in Domestic Airports & Metro stations across India which will impact the sales of American Beverages giants along with Vocal for Local Pitch. This pressure tactic might make the US companies to pacify the POTUS in the long run. The tariffs is going to have pressure on the Indian exports of agri commodity exports, handicrafts, leather goods which are going to less impact on the total exports from India but definitely on the livelihood of farmers, individual craftsman’s & MSME’s . This is due to overpricing of the commodities compared to other countries. As elections are due in the next year for some states, the current Indian government will need to pacify these people for the outcome of the state elections, which is crucial for Modi’ government.”