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Key Points

PHDCCI's Ranjeet Mehta acknowledges short-term challenges for Indian MSMEs due to Trump's new tariffs but highlights long-term opportunities. He stresses India’s competitive edge in tech and demographics to attract global partnerships. The US move could raise consumer prices, reinforcing the need for diversified markets. Mehta sees India’s recent UK trade deal as a stepping stone to becoming a reliable supply chain player.

Key Points: PHDCCI Chief Mehta Sees Opportunity in Trump's 25% India Tariff

  • Trump's 25% tariff may disrupt Indian MSMEs in the short term
  • India can leverage demographic and tech strengths for global realignment
  • US consumers will face higher prices due to cross-border tariffs
  • India's trade pacts like UK deal boost reliability amid supply chain shifts
3 min read

There'll be a momentary impact on our MSMEs, but this is also an opportunity: PHDCCI chief on Trump's 25 pc tariff on India

PHDCCI's Ranjeet Mehta says US tariffs on India will momentarily impact MSMEs but also open doors for global realignment and competitiveness.

"There will be a momentary impact on our MSMEs, but we see this as an opportunity. – Ranjeet Mehta, PHDCCI"

New Delhi, July 30

Emphasising that the world is now entering an era of new alignments in the global supply chain, CEO and Secretary General of PHDCCI, Ranjeet Mehta, said that the imposition of a 25 per cent tariff on goods exported to the United States will have a momentary impact on India's Micro, Small and Medium Enterprises (MSMEs).

Speaking to ANI, Mehta said that this provides an opportunity for India to scale up its businesses.

"We are now entering an era of new alignments in the global supply chain. The US is also recalibrating its trade policy by imposing tariffs on major exporting economies like China, Vietnam, Bangladesh and India. There will be a momentary impact on our MSMEs, but we see this as an opportunity, also. This is the time that India scales it up. We need to be more competitive and we need to see the diversified market. We have the demographic dividend, technological agility, and entrepreneurial depth," Mehta said.

"India is being seen as the most partner by the global leaders looking to de-risk their over-dependence on selected economies... Even the US consumers will have to pay more for the products. When there are numerous tariffs across economies, the consumer will be impacted ultimately," the PHDCCI Secretary General Mehta said.

Further, Mehta emphasised that India will gain with the tariff imposed as it will emerge as a very reliable partner for the global players.

"Recently, India has signed a comprehensive agreement with the UK. We are in advanced discussions with various nations... India is going to gain with the tariff imposed, because it will emerge as a very reliable partner for the global players looking to realign their supply chain..." Mehta said.

US President Donald Trump on Wednesday said that India will pay a 25 per cent tariff on goods exported to the United States. He further said that India will have to pay an additional penalty due to its oil and military purchase from Russia.

Trump, in a post on Truth Social, said the tariffs will begin on August 1.

He accused India of having high tariffs, tough trade barriers, and buying most of its military and energy supplies from Russia. Trump said these actions are "not good" at a time when the world wants Russia to stop the war in Ukraine.

"Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country," Trump said in his Truth Social post.

"Also, they have always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE - ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST 1st. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!", the US President said.

- ANI

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Reader Comments

P
Priyanka N
Trump's tariffs are unfair but we must use this as an opportunity to strengthen our domestic manufacturing. The government should provide more support to small businesses during this transition period.
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Amit K
Why is everyone surprised? America first means America first. We should focus on our own 'India first' policy now. Let's strengthen trade with BRICS nations and ASEAN countries.
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Sarah B
As someone working in export business, this will hurt many small manufacturers in my city. The government needs to act fast with relief measures and alternative market access.
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Karthik V
While I agree we need to diversify, let's not pretend 25% tariff won't hurt. Many MSMEs operate on razor-thin margins. This could lead to job losses if not handled carefully.
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Neha E
The timing couldn't be worse with global slowdown. But maybe this will push our businesses to innovate and improve quality. Every challenge is an opportunity in disguise! 💪

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