Saralnama
The US will impose an additional 25% tariff on Indian goods from August 27, 2025, raising total tariffs to 50%, significantly affecting India's Micro, Small and Medium Enterprises (MSMEs) sector, which accounts for about 45% of the country's exports, according to a CRISIL Intelligence report. The textiles, gems and jewellery sectors, representing 25% of Indian exports to the US and dominated by MSMEs with over 70% share, are expected to be most impacted. The gems and jewellery sector in Surat, Gujarat, which leads diamond exports—over 50% of the sector's exports—will face tariff shocks. Chemicals, where MSMEs hold a 40% share, will also be affected amid competition from Japan and South Korea, which face lower US tariffs. The steel sector is expected to see negligible impact as US imports focus on flat products, while Indian MSMEs mainly produce re-rolling and long products. Ready-made garments in textiles may lose competitiveness in the US market compared to countries like Bangladesh and Vietnam, which have lower tariffs. (Updated 20 Aug 2025, 13:41 IST; source: link)