According to a recent KPMG analysis, the prospect of higher U.S. tariffs could dampen trade volumes, slow hiring activity, and weaken investor confidence in India.
The report highlights that micro, small, and medium enterprises (MSMEs)—which account for more than 45% of India’s exports—face heightened risks due to their limited customer base and vulnerable supply chains.
With over 30% of India’s exports in sectors such as textiles, pharmaceuticals, smartphones, gems, and marine products heading to the U.S., any tariff hikes could significantly impact competitiveness.
In particular, India’s textile exports risk losing market share as other countries benefit from lower duties and cost advantages in the American market.
To mitigate these risks, KPMG suggests targeted policy measures, including subsidies, working capital support, and export credit insurance, to protect MSMEs, safeguard jobs, and strengthen long-term resilience and global competitiveness.
India's textile exports face a "long pathway" due to intense global competition!
CREDITS: This is automated information generated from the internet and has not been reviewed & edited by us.
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