00:00So joining at Asianate News today is Brijesh Goelji.
00:04Brijeshji, first of all, you know, Trump's tariff of 50% on Indian exports to US,
00:10it took into effect from 27th August. It's been entire one day now.
00:16How do you assess the situation? What is your immediate assessment? How huge is the blow?
00:22Yeah, it's very unfortunate that the US imports 50% tariff on Indian products.
00:31And it will affect badly Indian textile industry, Indian gems and jewelry industry, Indian leather, pharmaceuticals.
00:39Though he hasn't announced on the pharma, but the sword on the neck already.
00:44And the electrical, electronic sector, all these sectors will be badly affected.
00:50You see, on the last financial year, India exported around 53% textile products,
00:58around 53% gems and jewelry, 37% leather. These are the key sectors in which India deals,
01:06India exports in a very large number to USA. So these sectors will be badly affected.
01:13What all countries India can actually look up to in order to diversify its export market?
01:18Yeah, see, India should seek new country options like Vietnam, like Singapore, like Germany,
01:28UK and other European countries also. There are very good markets of electronics, pharma,
01:35textile, seafood and leather. These are the key items in which India will struggle,
01:44India will face huge problems. India will seek new options for this country, for this export.
01:51India should also reconsider its export policy. There are lots of hurdles in its export policy.
01:57So we will have to, we can't depend on USA itself every time or China.
02:05In previous years, we have seen how we have depended on China and how we
02:11solve problems with China. So we should, we should seek other countries options also.
02:16Rajesh, because you are the chairman of CTI, you, the CTI is a body which actually protects the interests of,
02:24you know, the entire industry community. Have you reached out to the government in order to,
02:28you know, kind of request some sort of measures to provide a cushion to these blows?
02:34A few days ago, we have written up letter to Prime Minister Narendra Modizi. We have sent up full details
02:42and how we can promote our Indian products. Because from last few days, we are, we are,
02:47we have been watching that Prime Minister Modizi are saying, use Swadesi, Swadesi,
02:53Indian products. So he regularly, he has been saying that use Indian products, Indian soil products. So
03:02we have sent them two suggestions also. And yesterday we have sent a letter to
03:07Commerce Minister Pius Goelji also. We are seeking, we are seeking their time also. We want to meet him
03:14and we have good response from their ministry, their concerned person. I think we will meet in few days
03:22to Pius Goelji. We have a complete memorandum, complete roadmap, how we can promote our, our items to
03:30our countries also. How we can promote our Indian, Indian products in our country. What should India,
03:37our country do to promote its, its own manufacturing, its own, own products?
03:43Prime Minister Modizi has been urging all the Indians to actually become self-reliant, buy Indian
03:50products, go vocal for local. But at this time, I also want to ask you how crucial it is industry-wise.
03:56Because when we talk about the hardest hit sector, for example, textile, we do know that India imports
04:02textile materials also. So how can we, you know, industry-wise actually look industry-wise and then
04:08solve this problem? Because India, if it's taking a hit on exports in textiles, then definitely we can do
04:14something so that we have to import less raw materials in these particular industries.
04:19India is the biggest market of textile industry. And we are facing competition with the
04:38Bangladesh and Vietnam. These are the countries where very good quality of textile to their
04:43manufacturers. And they, we are competing with them in this industry. And, and similarly,
04:50USA imposed 50% tariff on India. Similarly, they have imposed around 20% tariff on Bangladesh and
04:57Vietnam also. So it will be very difficult for our manufacturers, our textile companies to
05:04sell their products, export their products to USA. Because, because already we are, we are facing big
05:10competition with Bangladesh and Vietnam. We are the very good manufacturers of textile, textile products.
05:15So it will be very difficult for our, our manufacturers, our companies. And surely it will affect very badly.
05:23And last two days, we have seen media reports that in Gujarat, Surat, Tamil Nadu, lots of states,
05:31people have stopped their manufacturing, stopped their production. So it will be, it will definitely,
05:40discourage our employment around 10 lakhs of jobs, which I think will be affected especially on textile industry.
05:48Have you also urged the government to actually impose counter tariffs on US?
05:54Yes, yes. Yesterday, now later, we have sent to Modiji that India should also impose counter 50%
06:05tariffs on Donald Trump. Because we have seen that past history. If you, if you see, if you, if you see,
06:13if you see yourself, if Trump's policy is that in future we have seen that. If, if any country
06:21they become weak, then he always, he becomes aggressive. If you impose tariffs, he might be some,
06:30some pressure for their own benefactors, own companies. He might, he can reverse their carry also.
06:36Because until, it will be very difficult to face our issues. And that, one thing is more that,
06:43we have sent a request to Indian government that, because textile industries,
06:48is facing around 18% GST on our textile industry clause side terms. So India should, our, our GST
06:57council is going to help on 3rd or 4th September meeting. So we are, we have requested them that
07:0318% GST on clause is very, very, very high. So India, GST council should do it, cut down and it should
07:12be around 5% left. So it will be a big boost to our textile industry. And some other relief packages
07:19also should be there. Right. Rajesh, also one final question from my side. You know, when we talk about
07:27Trump, we do know that India, US longstanding ties have taken a hit. It has become so sour,
07:33but because you are the chairman of CTI, you must be interacting with Indian diaspora in US.
07:38How is the people to people connect? Because when these orders are getting cancelled, I'm pretty sure
07:42that it is not so easy for businesses to actually tackle it on a human level.
07:49Yeah, people are very tense. I've talked to people in, in the last few days, they have sent the
07:54material to US companies, their materials, materials are on the way, they have taken the order. They are
08:02very tense that what become the actual scenario, actual status of their payments and the material
08:08they have gone, they have sent to them, what will be the status. So they are very tense actually,
08:15those industries, few textile people, because I am from auto industry. I personally don't export
08:22USA, but there are lots of companies in our segment auto industry. They are very good exporter to US in
08:30auto components. So people are tense that what will be the future. That's why people, people are also
08:36a little bit optimistic that might be India, USA deal, some talks, talks become silent there. They
08:44can reverse their tariff. And if it comes around 20 to 25%, it will be equal to other countries. Then we
08:50can compete other countries. Because you see, in the whole world, if you see the chart, you see the list,
08:57India and Brazil are the maximum 50% tariff that they have been imposed. So India is the maximum,
09:05so it will be very difficult for India. In those items, then we are depending on USA. We export very
09:13largely to USA. Yes, surely that's why I am sending you that especially textile industry,
09:20we have seen in the media reports also, they are very tense and their butter and bread is in danger
09:30actually. Because if you are heavily dependent on USA, last 20, 30 years, you are selling
09:38a crores and crores of dollars to export to USA and your industry is completely, your production is
09:45heavily dependent on USA business people, then definitely it will suffer. It is going
09:50to suffer a lot. So that's why Paul is in the court of the Marindra Mobility and England government
09:58see what decisions they take and how they deal with USA on this, this tariff issue. So next few days
10:08will be very, very crucial, very interesting that how, how does it fall? Have you received some sort of
10:14grievances letters from these industries, these companies, which have been hit? Not letters specific,
10:22but yeah, you know, some lots and lots of WhatsApp groups on social media. I'm also very active on
10:28Insta, Twitter and Facebook. On social media platform, I've got lots of messages and our WhatsApp groups,
10:35nationally, we have lots of groups, lots of traders in our groups. We have got lots of grievances
10:42of their relatives, few people, their relatives are dealing, they all, they themselves are doing. So
10:48there are very, very lots of people who are in tension, who deal directly with USA. And not only
10:56the exporters, importers are also in the tensions because, because if India, USA imposed tariff, there
11:05might be India can also impose counter tariff on US exports, then our importers will also be going to
11:13be suffered. So importers are also in the tension.
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